Can High Network Fees on a Blockchain like Ethereum Contribute to a Form of Execution Cost Similar to Slippage?

Yes, high network fees, often called 'gas fees' on Ethereum, act as a significant execution cost, similar in effect to slippage. For an arbitrage trade to be profitable, the price discrepancy must be large enough to cover the network fees for both the buy and sell transactions.

During times of network congestion, these fees can become extremely high and unpredictable. This cost can easily erase the potential profit from a small arbitrage opportunity, effectively making it non-viable, just as slippage would.