What it is
MEV arises from the ability of block producers to decide which transactions to include in a block and their order. This allows them to execute profitable strategies like front-running, back-running, or sandwich attacks on user transactions. For example, a validator might observe a large pending trade on a decentralized exchange and insert their own transaction before it to profit from the price movement.
MEV is a widely discussed topic in the Ethereum ecosystem, especially since its transition to proof-of-stake. News and research frequently highlight the cumulative value extracted and new protocols designed to mitigate or democratize MEV. Retail investors typically encounter MEV through higher slippage or less favorable execution prices on their decentralized exchange trades, often without realizing it.
Why it matters
MEV can subtly impact transaction costs and execution prices for retail investors on decentralized exchanges.
Reviewed under editorial standardsUpdated September 26, 2026Not investment advice