MEV Spam Consumes 60% of L2 Blockspace, Drives Up Fees

MEV Bots Flood Ethereum L2 Blockspace With Spam, Driving Up User Fees and Hindering Network Scaling

  • MEV bots generate significant “spam” transactions, using up to 60% of available blockspace on major blockchain networks.
  • This spam activity results in higher fees for regular users on Ethereum layer-two (L2) platforms and similar networks.
  • Despite consuming large resources, MEV bots pay less than 10% of total transaction fees, highlighting inefficiencies.
  • Research suggests most spam comes from a few searchers, with two bots responsible for over 80% of spam on the Base Network.
  • Some MEV bots have been used to intercept and prevent hacks, adding complexity to their role within decentralized finance ecosystems.

A recent report titled "MEV and the Limits of Scaling" outlines how maximal extractable value (MEV) transactions create large volumes of spam, counteracting improvements in blockchain throughput. This report focuses on Ethereum L2 scaling networks and other high-throughput blockchains, showing that the surge in MEV activity leads to higher fees for regular users.

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Analysis by Flashbots reveals that on rollups built with the OP Stack, such as Optimism and Base, MEV bots occupy up to 60% of blockspace while paying under 10% of total network fees. The group found that most of this spam can be traced to just a handful of automated searchers, with two bots responsible for more than 80% of MEV spam on the Base rollup.

According to Bert Miller of Flashbots, “MEV has become the dominant limit to scaling blockchains,” and the wasteful on-chain searching now uses a majority of capacity on major networks. The report highlighted an incident where a single arbitrage operation spent $0.02 on gas to net a $0.12 profit, yet required nearly 132 million gas—equivalent to almost four standard Ethereum blocks. Flashbots calculated that effective gas throughput (gas available for actual user transactions, minus spam) falls far behind the network’s advertised capacity because of this spam activity.

In MEV activity, bots attempt to profit from price differences across decentralized exchanges by quickly submitting and canceling transactions. If no profitable trades are found, the transactions are aborted. This "winner-takes-all" system causes intense competition and leads to a high number of failed and aborted transactions, increasing network costs for all users. Flashbots’ report finds this inefficiency sets a “persistent, artificially high baseline for transaction fees.”

The report proposes solutions like allowing controlled access to pending transactions and more efficient auctions for MEV inclusion, which could reduce unnecessary traffic. However, it cautions that such changes should include restrictions to limit predatory tactics by MEV bots.

While MEV is often portrayed negatively, some bots have prevented losses by intercepting hacks. For example, a $120,000 hack of Ethereum-based Meta Pool was disrupted by a MEV bot that frontran the attacker. In some instances, bot operators return stolen assets, sometimes for a bounty.

Additionally, the report noted cases like a “sniper” who sold a single Spark token for almost $20,000 in USDT minutes after a new airdrop, far exceeding its typical market value.

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Full details can be found in the Flashbots blog report.

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