Ethereum Validator Earnings Expansion Due to Pepecoin Popularity | coindesk JAPAN | Coindesk Japan

Last weekend’s frenzy over Pepecoin (PEPE) dramatically increased the profitability of the validators behind the Ethereum blockchain.

According to data site mevboost.pics, earnings from MEV-Boost surged over the weekend. Combined with transaction fees, validator revenues rivaled the turmoil caused by the FTX bankruptcy, which boosted demand for Ethereum (ETH).

On May 6th, MEV (Maximum Extractable Value) earned 549.05 ETH and transaction fee was 2457.73 ETH, totaling 3006.78 ETH (approximately $5.6 million at the time of writing). On November 9, 2022, which was affected by the FTX collapse, MEV had a revenue of 2505.69 ETH and transaction fees of 1423.99 ETH, for a total of 3929.68 ETH (about $6.1 million).

MEV refers to the profit or method obtained by validators analyzing a waiting trade pool (mempool) and changing or optimizing the order of trades. There are some similarities to arbitrage trading in the conventional market, and it is ostensibly a legal act,front runningIt is sometimes compared to

front running: In conventional financial transactions, “Financial instruments business operators who received orders from customers (investors) and their officers and employees make their own transactions at a price that is more advantageous than the customer’s order before completing the customer’s transaction. (Source: Daiwa Securities), which is prohibited in Japan by the Financial Instruments and Exchange Law.

With Pepecoin soaring, transaction fees on the Ethereum blockchain have risen and validators have made a sizable profit. MEV typically accounts for a significant portion of a validator’s revenue during these times, but when transaction fees rise, validators can earn even more.

So far, both MEV revenue and transaction fees have been higher than the popularity of Pepecoin this time around because of the Silicon Valley bank run and the impact that the stablecoin USD Coin (USDC) deviated from Dolbeg. only when

Since the weekend, trading fees have fallen following the drop in the price of Pepecoin and the listing of Pepecoin by cryptocurrency exchange Binance.

｜Translation: coindesk JAPAN
｜Editing: Takayuki Masuda
| Image: Danny Nelson/CoinDesk
｜Original: PEPE Meme Coin Craze Spreads Wealth to Ethereum Validators Running Blockchain