- MEV bots and sandwich attacks on the BNB network increased.
- Revenue generated by the network soared and development activity increased.
Binance’s smart chain [BNB] network has been witnessing tremendous volatility in the past few days due to various reasons such as the current sentiment in the market and the legal issues faced by Binance.
Despite these factors, overall activity on the BNB network remained consistent.
Bots are flooding the network
However, the increase in activity can be attributed to MEV bots and sandwich activity on the network. This was mentioned in crypto analyst Hildobby’s recent post.
According to the data, BNB experienced a significant increase in sandwich activity due to Ethereum’s highly competitive MEV landscape.
At the time of writing, the statistics stand at $1 billion per week, which amounts to 14% of the total volume, with 35,000 victims per week (4.6% of traders) and 215,000 transactions per week (4% of the total number of transactions).
For context, MEV (Miner Extractable Value) bots are automated programs that exploit the order execution order on blockchain networks to extract maximum value for miners.
Sandwich attacks involve strategically placing buy and sell orders around a target trade to manipulate its execution price, usually to the attacker’s advantage and to the detriment of other traders.
Source:
Possible consequences
The increase in this type of activity, driven by Ethereum’s fiercely competitive MEV landscape, raises several concerns.
First, the significant volume involved could lead to increased network congestion, resulting in delayed transaction confirmations and higher transaction fees, degrading the overall user experience.
Furthermore, the increased number of victims could cause security and trust issues within the BNB network. Users who fall prey to sandwich attacks may suffer financial losses, which in turn can lead to a decrease in overall trust in the network.
Furthermore, the significant number of transactions attributed to sandwich activities risks overloading the network’s capacity, potentially hindering the scalability and efficiency of BNB transactions.
Realistic or not, here is the market cap of BNB in terms of BTC
Looking at the positive side
Turning to other aspects of the BNB network, revenue generated by the protocol was found to have grown by 25% over the past month.
Additionally, there was also an increase in development activity on the network. Token Terminal’s data showed that the number of code commits for the BNB network had grown by 80% in the past 24 hours.
Source: token terminal