A $10M investment in Bitcoin Mining generates $180K daily, more than 20 times the amount of money put into Ethereum block-building. Private order flo

Wisdom of DeFi by EigenPhi

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2024-11-22 19:00:16

A $10M investment in Bitcoin Mining generates $180K daily, more than 20 times the amount of money put into Ethereum block-building.

Private order flows constitute 80% of block value, inaccessible to new builders who can’t afford to subsidize 7.4 ETH per month.

On September 15, 2022, Ethereum finished its most important upgrade: the Merge, along with the implementation of Proposer-Builder-Separation, PBS, the goal of which is to increase transaction processing efficiency via specialized roles.

After the merge, the consensus system transitioned from Proof-of-Work, PoW, to Proof-of-Stake, PoS, which created a diversified staking landscape, illustrated in the chart below from the Builder Performance Analysis dashboard. It shows a diversified validator landscape from Sept 2023 to Aug 2024.

However, the key phase of interest allocation is not up to stakers. Instead, it's hijacked by very few top builders, who control the influx of transactions, including degens' snipping, market makers' solving, and, most importantly, searchers' MEV strategies.