Why Is Low Latency Critical for Successful Arbitrage in DeFi?

Low latency is crucial because arbitrage opportunities are fleeting and highly competitive. The price imbalances that create the profit window are quickly corrected by the first successful arbitrage trade.

Bots with lower latency can detect the imbalance faster and submit their transaction with a higher gas fee sooner, ensuring their transaction is included in the next block before competitors, thus securing the profit.