The Number of Private Transactions on Ethereum Doubles in Last Quarter

Blocknative Ethereum Web3

This quarter, private transactions—meaning transactions that bypassed the public mempool—made up 9.6% of all smart contract transactions on Ethereum. That’s nearly 1 out of every 10 transactions!

This is more than a 2x increase from last quarter where only ~4.5% of transactions were "private". Private transactions are typically linked to MEV bundles, OFAs, or some other sources of private order flow.

FzvLUslaIAUjFba

To identify the source of this increase in private transaction landing on-chain, we took a deeper dive into the data and found that 45% of the private transactions in May and June were sent through MEV Blocker, indicating that the use of Order Flow Auctions (OFAs) for MEV Protection and value recirculation are on the rise. 


F0skcyOaAAAXl9u

NOTE: In this dataset, we define “private” transactions as transactions not seen by our mempool archive. We have also excluded any private transactions related to builder payments (payments to the validator at the end of the block).

Mempools are local to each node. While we have a constellation of detector nodes, it's not guaranteed that we see EVERY public transaction. A transaction could be public but if our archive didn’t see it then it was marked “private” However, this would represent a very small minority of cases.

 

Join the Discussion on Twitter

 

 

Observe Ethereum

Blocknative's proven & powerful enterprise-grade infrastructure makes it easy for builders and traders to work with mempool data.

Visit ethernow.xyz

Want to keep reading?

Good choice! We have more articles.

cut-through-the-noise:-how-to-quickly-leverage-filters-to-find-real-time-insights-on-ethereum
Ethernow

Cut Through the Noise: How to Quickly Leverage Filters to Find Real-time Insights on Ethereum

With Ethernow, you get a real-time stream of what is happening right NOW on Ethereum. That means..

blocknative-supports-the-polygon-amoy-testnet
Polygon

Blocknative Supports the Polygon Amoy Testnet

The Polygon ecosystem is thriving, and Blocknative is excited to announce its support for the new..

announcing-the-blocknative-blob-archive-api:-preserving-the-ephemeral-data-layer
Blob

Announcing the Blocknative Blob Archive API: Preserving the Ephemeral Data Layer

Did you miss a blob? Do you want to know what was in a blob that went on-chain a month ago? We are..

Connect with us. Build with us.

We love to connect with teams who are building with Blocknative. Tell us about your team and what you would like to learn.

"After first building our own infrastructure, we appreciate that mempool management is a difficult, expensive problem to solve at scale. That's why we partner with Blocknative to power the transaction notifications in our next-generation wallet."

Schedule a demo