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

**Published:** 2025-12-05
**Author:** Greeks.live
**Categories:** Path

---

## 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.

- [How Do Centralized Exchanges Prevent Double-Spending before Blockchain Confirmation?](https://learn.greeks.live/path/how-do-centralized-exchanges-prevent-double-spending-before-blockchain-confirmation/)

- [How Does Network Congestion Affect the Liquidation Process?](https://learn.greeks.live/path/how-does-network-congestion-affect-the-liquidation-process/)

- [Define “Latency” and Its Role in Options Trading Slippage](https://learn.greeks.live/path/define-latency-and-its-role-in-options-trading-slippage/)

- [What Is the Difference between a Zero-Confirmation and a One-Confirmation Transaction?](https://learn.greeks.live/path/what-is-the-difference-between-a-zero-confirmation-and-a-one-confirmation-transaction/)

- [How Does the Cost of Execution Impact the Viability of an Arbitrage Opportunity?](https://learn.greeks.live/path/how-does-the-cost-of-execution-impact-the-viability-of-an-arbitrage-opportunity/)

- [What Is the Difference between “Base Fee” and “Priority Fee” in EIP-1559?](https://learn.greeks.live/path/what-is-the-difference-between-base-fee-and-priority-fee-in-eip-1559/)

- [How Does Blockchain Network Congestion Affect DEX Liquidation Efficiency?](https://learn.greeks.live/path/how-does-blockchain-network-congestion-affect-dex-liquidation-efficiency/)

- [How Does a Network’s Congestion Level Affect the Block Confirmation Time?](https://learn.greeks.live/path/how-does-a-networks-congestion-level-affect-the-block-confirmation-time/)

## Glossar

### [Transaction Latency](https://learn.greeks.live/area/transaction-latency/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

Impact ⎊ Transaction Latency is the total time elapsed from when a user broadcasts a transaction to when it is confirmed and finalized within a block on the blockchain ledger.

### [Failed Trade](https://learn.greeks.live/area/failed-trade/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

Event ⎊ A trade failure occurs when an intended transaction, often involving cryptocurrency derivatives or spot assets, does not complete its lifecycle due to technical or operational impediments.

### [Layer-2 Scaling Solution](https://learn.greeks.live/area/layer-2-scaling-solution/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

Architecture ⎊ These solutions operate as secondary protocols built atop a base layer blockchain, designed to process transactions off-chain to enhance throughput and reduce per-unit cost.

### [Network Congestion](https://learn.greeks.live/area/network-congestion/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

Latency ⎊ Network congestion within cryptocurrency, options trading, and financial derivatives manifests as increased latency, directly impacting execution speeds and potentially leading to adverse selection against slower participants.

### [Arbitrage Opportunity](https://learn.greeks.live/area/arbitrage-opportunity/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

Discrepancy ⎊ An arbitrage opportunity in cryptocurrency, options, or derivatives arises from temporary price imbalances across different markets or forms of the same asset, representing a risk-free profit potential.

### [Pending Transactions](https://learn.greeks.live/area/pending-transactions/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

Confirmation ⎊ Pending transactions represent unconfirmed instructions within a distributed ledger, existing in a mempool prior to inclusion in a block.

## Discover More

### [How Do Transaction Fees Change Based on Network Congestion and Block Space?](https://learn.greeks.live/path/how-do-transaction-fees-change-based-on-network-congestion-and-block-space/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Do Transaction Fees Change Based on Network Congestion and Block Space?](https://learn.greeks.live/wp-content/uploads/2025/10/Crystalline-Digital-Asset-Equilibrium-Balancing-on-Thin-Edge-of-Volatility-Surface.webp)

Fees rise with network congestion as users compete for limited block space, incentivizing miners to prioritize high-fee transactions.

### [How Does a High Volume of Network Activity Affect the Average Transaction Fee?](https://learn.greeks.live/path/how-does-a-high-volume-of-network-activity-affect-the-average-transaction-fee/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does a High Volume of Network Activity Affect the Average Transaction Fee?](https://learn.greeks.live/wp-content/uploads/2025/10/Decentralized-Exchange-Liquidity-Pool-Crosscurrents-Modeling-Volatility-Surface-Skewness.webp)

High transaction volume creates network congestion, forcing users to bid up fees to gain priority inclusion by miners.

### [Can a Blockchain Transaction Be Subject to Latency Arbitrage across Different Block Explorers?](https://learn.greeks.live/path/can-a-blockchain-transaction-be-subject-to-latency-arbitrage-across-different-block-explorers/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![Can a Blockchain Transaction Be Subject to Latency Arbitrage across Different Block Explorers?](https://learn.greeks.live/wp-content/uploads/2025/10/Precision-Actuation-Mechanism-Rendering-Illustrating-High-Frequency-Exchange-Data-Latency-Mitigation-Strategies.webp)

No, block explorers are display tools; arbitrage exploits latency in transaction broadcasting to different nodes, not in the explorer's display.

### [What Is the Mathematical Relationship between Network Hash Rate and Network Difficulty?](https://learn.greeks.live/path/what-is-the-mathematical-relationship-between-network-hash-rate-and-network-difficulty/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is the Mathematical Relationship between Network Hash Rate and Network Difficulty?](https://learn.greeks.live/wp-content/uploads/2025/10/Imbalance-Vector-Equilibrium-in-Decentralized-Finance-Derivatives-Pricing-Structures.webp)

Difficulty is proportional to the network hash rate, adjusting to keep the average block discovery time constant (e.g. 10 minutes).

### [How Does Transaction Latency Affect the Profitability of High-Frequency Spot-Futures Arbitrage?](https://learn.greeks.live/path/how-does-transaction-latency-affect-the-profitability-of-high-frequency-spot-futures-arbitrage/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does Transaction Latency Affect the Profitability of High-Frequency Spot-Futures Arbitrage?](https://learn.greeks.live/wp-content/uploads/2025/10/Quantum-Lattice-Structure-Mimicking-Volatility-Surface-Dynamics-in-Decentralized-Finance-Instruments.webp)

High latency reduces profitability because arbitrage opportunities are fleeting and slow execution leads to slippage or missed trades.

### [Why Can Fee Estimation Be Inaccurate during Periods of Sudden Network Congestion?](https://learn.greeks.live/path/why-can-fee-estimation-be-inaccurate-during-periods-of-sudden-network-congestion/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![Why Can Fee Estimation Be Inaccurate during Periods of Sudden Network Congestion?](https://learn.greeks.live/wp-content/uploads/2025/10/Conceptual-Intersection-of-Digital-Asset-Securitization-and-Bear-Put-Option-Settlement-Dynamics.webp)

Algorithms use historical data and fail to capture sudden spikes in demand, leading to underpriced and delayed transactions.

### [What Is 'Mempool' in the Context of Transaction Congestion?](https://learn.greeks.live/path/what-is-mempool-in-the-context-of-transaction-congestion/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is 'Mempool' in the Context of Transaction Congestion?](https://learn.greeks.live/wp-content/uploads/2025/10/Hydrophobic-Surface-Tension-Modeling-in-High-Frequency-Crypto-Derivative-Liquidity-Provision.webp)

The waiting area for unconfirmed transactions; a full Mempool signifies network congestion.

### [What Is 'Latency Arbitrage' and How Does 'Last Look' Attempt to Mitigate It?](https://learn.greeks.live/path/what-is-latency-arbitrage-and-how-does-last-look-attempt-to-mitigate-it/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is 'Latency Arbitrage' and How Does 'Last Look' Attempt to Mitigate It?](https://learn.greeks.live/wp-content/uploads/2025/10/Symmetrical-Digital-Asset-Interfacing-Mechanism-Representing-Hedging-Strategies-in-Decentralized-Finance.webp)

Latency arbitrage exploits price differences with speed; 'last look' lets the LP reject trades at stale prices to prevent being exploited.

### [How Does the Speed of a Blockchain Network Affect the Latency of Crypto Derivatives Trading?](https://learn.greeks.live/path/how-does-the-speed-of-a-blockchain-network-affect-the-latency-of-crypto-derivatives-trading/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does the Speed of a Blockchain Network Affect the Latency of Crypto Derivatives Trading?](https://learn.greeks.live/wp-content/uploads/2025/10/Conceptual-Modeling-of-High-Frequency-Algorithmic-Trading-Microstructures-Within-Digital-Asset-Derivatives-Exchange.webp)

Slower networks increase the latency of on-chain settlement and margin updates, raising operational and settlement risk for on-chain derivatives.

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**Original URL:** https://learn.greeks.live/learn/how-does-network-congestion-affect-the-latency-of-an-arbitrage-transaction/
