TL;DR

MEV (Maximum Extractable Value) allows validators to reorder blockchain transactions for extra profit, but it raises concerns about fairness and centralization on Solana and Ethereum.
Validators can profit from MEV through arbitrage, liquidations, and sandwich attacks, but this can hurt regular users and favor the rich.
On Solana, MEV is dominated by Jito, a protocol that centralizes power and profits among large stakers and institutions.
Solana’s high-speed design and lack of a mempool make it easier for big players using Jito to dominate the MEV game.
Ethereum, with its public mempool, distributes MEV opportunities among validators, builders, and searchers—but still faces risks of centralization and abuse.

Introduction

Maximum Extractable Value, or MEV, is the extra profit that validators can make by deciding how to organize, include, or skip transactions while generating a block. With the rise of decentralized finance (DeFi) and memecoins—those quirky, volatile currencies that can surge or plummet—MEV has become a major concern on blockchains like Solana and Ethereum, both pivotal platforms in the DeFi ecosystem. Solana, launched in March 2020 by the Solana Foundation, leverages a proof-of-history (PoH) and proof-of-stake (PoS) hybrid to enhance scalability for decentralized apps (DApps). Ethereum, operational since July 2015, powers a global platform for decentralized applications and smart contracts using its native cryptocurrency, Ether (CoinMarketCap, 2025).

This article examines what MEV is, how it operates on Solana and Ethereum, and the ethical and regulatory issues it raises. MEV is a double-edged sword: it boosts validator earnings, potentially strengthening network security, but it also risks centralization and fairness as powerful players dominate.

What Is MEV?

MEV stands for Maximum Extractable Value, and it’s all about the extra cash validators (or miners, in the old days) can make by deciding the order of transactions in a block. Think of a validator as a chef preparing a dish—you can swap ingredients around to make it tastier (or more profitable).

In blockchain, transactions aren’t just processed in the order they arrive. Validators can shuffle them to maximize their gains, and that’s where MEV comes in.

There are a few common ways validators pull this off:

Arbitrage: This is like spotting a deal at one store and selling the same item for more at another. Validators notice price differences for a token on different decentralized exchanges (DEXs), like Solana’s Raydium or Ethereum’s Uniswap. They buy low on one and sell high on another, pocketing the difference.
Liquidation: In DeFi lending platforms, if someone’s loan collateral drops too low, their position can be liquidated. Validators race to process these liquidations because they earn a reward, like a finder’s fee, for closing out the risky loan.
Sandwich Attacks: Picture this as cutting in line to make a quick buck. A validator spots a large trade, such as someone buying a memecoin. They place their buy order just before (front-running) to push the price up, let the big trade happen at a worse price, then sell right after (back-running) at the inflated price. The trader gets a bad deal, and the validator profits.

Front-running means jumping ahead of a transaction, while back-running involves following it to take advantage of the price shift. For real-world examples, check out Helius’s report on Solana’s MEV landscape, which outlines how these strategies work in practice. It’s a wild world, but it’s also a core part of how blockchains operate today.

MEV on Solana: A Centralized Profit Game

Solana has become a hotspot for MEV, fueled by the memecoin frenzy and a thriving DeFi scene. Traders chase 100x gains on tokens like WIF or BONK, but behind the scenes, a different kind of money-making is happening. Solana’s MEV game is dominated by the Jito protocol, which controls a whopping 94% of the client market share. Jito’s system lets validators prioritize certain transactions through “Jito Bundles,” where searchers (those hunting MEV opportunities) pay tips to get their trades processed first.

Here’s how it works: Solana’s proof-of-stake system gives more block-building power to nodes with higher stakes—think of it as the rich getting richer. High-stakes nodes, often run by big players, have faster access to transaction data and can sync with Jito’s services to spot arbitrage or liquidation opportunities in milliseconds. This setup has turned MEV into a goldmine. In the past year, Jito processed transactions worth $7.7 billion, earning approximately $3.5 million for itself. Meanwhile, high-staking nodes achieved annualized returns of up to 20%. Brokers who bundle transactions for Jito also skim profits by selling access to block space.

But there’s a catch. This system leans heavily toward centralization. Big institutions, like Sol Strategies, are acquiring validator nodes to gain more control over the network. For example, Sol Strategies recently acquired nodes like Cogent Crypto and Laine, increasing their stake to 3.3 million SOL, worth approximately $388 million. They even proposed a governance change, SIMD-228, to tweak Solana’s inflation model, which could have squeezed out smaller nodes. Though the proposal failed, it shows how large players are flexing their muscles, raising fears that Solana’s MEV profits are concentrating in fewer hands.

MEV on Ethereum: Decentralization Challenges

Ethereum’s MEV story is different but just as complex. When Ethereum used proof-of-work, miners determined the order in which transactions were processed. After “The Merge” in 2022, which switched Ethereum to proof-of-stake, validators took over, but the MEV game didn’t slow down. Ethereum’s mempool—where transactions wait before being added to a block—is a key battleground. Unlike Solana’s mempool-less design, Ethereum’s public and private mempools let searchers and builders scan for profitable trades, like arbitrage or sandwich attacks.

The MEV supply chain on Ethereum involves three main players: validators, who finalize blocks; builders, who assemble transactions to maximize profits; and searchers, who hunt for MEV opportunities. This setup has led to massive profits—sandwich attacks alone raked in $24 million in a single month in 2024. But it’s not all rosy. The reliance on builders and searchers concentrates power, threatening Ethereum’s decentralized ethos. A recent exploit by the Peraire-Bueno brothers, who allegedly manipulated a relay system to steal $25 million in seconds, exposed how MEV can be abused.

Regulators are taking notice. The SEC and CFTC are monitoring sandwich attacks and oracle manipulation as potential market abuses, with rules like SEC Rule 10b-5 in effect. In the EU, the MiCA regulation could classify some MEV practices as market manipulation, especially when private mempools give certain players an edge. These regulatory pressures highlight the tension between MEV’s profitability and Ethereum’s promise of fairness.

Comparing MEV on Solana and Ethereum

Solana and Ethereum approach MEV differently, shaped by their unique designs. Solana’s high-speed, mempool-less architecture relies heavily on Jito’s infrastructure, which has a near monopoly with a 94% client share. This makes Solana’s MEV game highly centralized, favoring high-staking nodes and big institutions like Sol Strategies, which can afford to dominate block production. Ethereum, by contrast, spreads MEV across a wider net of validators, builders, and searchers, but this still leads to power concentration among those who control block construction.

Profitability tells a similar story. Solana’s MEV revenue is massive—$7.7 billion in transaction value flows through Jito alone, driven by memecoin mania and low fees that encourage spammy arbitrage attempts. Ethereum’s MEV profits are substantial, too, but they’re less monopolistic because of its diverse ecosystem of actors. However, Ethereum faces stricter regulatory scrutiny due to its global dominance in DeFi, with agencies like the SEC and EU regulators cracking down on manipulative practices, such as sandwich attacks. Solana, while not immune, flies under less regulatory radar for now.

Centralization risks are the common thread. Solana’s design naturally tilts toward institutional control, while Ethereum struggles with a balance between builder and searcher dominance. Both blockchains must balance MEV’s financial incentives with the need to stay decentralized.

Mitigating MEV’s Negative Impacts

So, how do we tame MEV’s wild side? Ethereum is exploring Proposer-Builder Separation (PBS), which splits the roles of proposing and building blocks to reduce builder dominance. This could make MEV extraction fairer by ensuring no single player controls the process. Another idea is encrypted transaction ordering, where transaction details remain hidden until they are finalized, reducing front-running and sandwich attacks.

Solana could benefit from adopting the Firedancer client, a high-performance upgrade that might improve transaction fairness and reduce reliance on Jito’s monopoly. Community governance is also key—both blockchains need active stakeholder participation to push for rules that balance profits with decentralization. Aligning MEV practices with antitrust principles, like promoting competition and preventing power concentration, could help keep things fair. These solutions aren’t perfect, but they’re steps toward ensuring MEV doesn’t undermine the decentralized dream.

Conclusion

MEV is a powerful force in blockchain, driving profits while posing risks to fairness and decentralization. On Solana, Jito’s dominance and high-staking nodes create a centralized profit machine, fueled by memecoin madness. Ethereum’s more distributed system still grapples with builder power and regulatory heat.

Both blockchains reveal MEV’s dual nature: a financial engine that can stabilize markets but also tilts the playing field in favor of the powerful. The road ahead lies in smarter technology, such as proposer-builder separation and encrypted ordering, alongside community-driven governance to keep MEV in check.

FAQ Section

What is MEV?

MEV (Maximum Extractable Value) is the extra profit that validators make by reordering blockchain transactions. It can make transactions unfair and favor big players on Solana and Ethereum.

How does MEV impact users?

MEV can raise costs or worsen trade prices for users. On Solana, Jito’s control amplifies this; on Ethereum, front-running and sandwich attacks hurt regular traders.

Can MEV be fixed?

Yes, Ethereum’s Proposer-Builder Separation and Solana’s Firedancer client can help. Hiding transaction details and community rules can also make things fairer.

References

CoinMarketCap. (2025). What is Solana (SOL)? Retrieved from https://coinmarketcap.com/currencies/solana/
CoinMarketCap. (2025). Ethereum (ETH). Retrieved from https://coinmarketcap.com/currencies/ethereum/
Solana Foundation. (n.d.). Solana blockchain platform. Retrieved from https://solana.com/
Jito Network. (n.d.). Jito Foundation official website. Retrieved from https://www.jito.network/

What Is MEV and How Does It Impact Solana and Ethereum?