MEV Driving Institutions Away from DeFi, Imposing Hidden Costs on Users

MEV Driving Institutions Away from DeFi, Imposing Hidden Costs on Users

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A crypto executive warns that Maximal Extractable Value (MEV) is creating a "hidden tax" for retail cryptocurrency users and deterring financial institutions from engaging with decentralized finance (DeFi).

The practice of broadcasting transactions before their execution, commonly associated with Maximal Extractable Value (MEV), is reportedly imposing a significant financial burden on retail cryptocurrency users. This mechanism is described as a "hidden tax," extracting value without clear compensation. Furthermore, a crypto executive highlighted that this issue is actively alienating financial institutions, causing them to shy away from the decentralized finance (DeFi) ecosystem. The overall impact is a reduction in user confidence and a barrier to broader institutional adoption within the crypto space.