How Does a Sudden Spike in Mempool Size Affect a Day Trader’s Execution Risk?

A sudden spike in mempool size indicates high network demand, leading to a surge in transaction fees and longer confirmation times. For a day trader, this increases execution risk because their time-sensitive trade (e.g. a liquidation or an arbitrage) may be delayed or fail to confirm quickly.

The trader must pay a significantly higher fee to ensure timely inclusion, which can reduce or eliminate the trade's profit.