How Does Network Congestion Affect the Latency of an Arbitrage Transaction?

Network congestion increases the time it takes for a transaction to be confirmed and included in a block. Even if an arbitrageur pays a high gas fee, the sheer volume of pending transactions can lead to unpredictable delays.

This increased latency means the arbitrage opportunity is more likely to be closed by other traders or for the price to move unfavorably before the transaction executes, resulting in a failed trade and a lost gas fee.