How Do Fluctuating Network Gas Prices Affect the Viability of MEV Strategies?
Fluctuating gas prices directly impact the profitability and viability of MEV strategies. When network congestion is high and gas prices spike, the cost of executing an MEV attack (like a sandwich attack) increases.
This can make less profitable MEV opportunities unviable, as the cost of the required transactions might exceed the potential gains. Conversely, during periods of low gas prices, the cost of execution is lower, making even small MEV opportunities profitable to pursue.
MEV bots must constantly adapt their profit calculations to account for real-time gas prices.