arXiv subjects

Bruce Mizrach

Publications and source records attributed to Bruce Mizrach.

4 recordsLinked to original sources

arXiv2026

Transaction Costs and Speed in the Ethereum Ecosystem: Scalability of the Mainnet and Layer 2s

We study the evolution of transaction speed and fees from January 2024 through March 2026, comparing Ethereum Mainnet and its Layer 2 (L2) networks, as well as Solana and Polygon. Ethereum has undergone upgrades that have increased block size and blob count. These upgrades have doubled transactions per second (TPS) on both the Mainnet and the L2 networks. Mainnet median fees have fallen from over \$2 to under \$0.02, and L2 median fees have fallen more than 95% from \$0.05 to \$0.0015. We forecast that Mainnet median fees will converge with Solana in August 2027, but TPS will remain below 100 until 2034. The L1 Strawmap, proposing EIP-7938, a potential exponential increase in the gas limit, brings the Mainnet to only 100 TPS in January 2028. With continued blob expansion, L2s will surpass Solana TPS in March 2029 and have lower median fees by October 2026.

q-fin.TR↗

arXiv2026

The Marginal Effects of Ethereum Network MEV Transaction Re-Ordering

Two MEV builders now produce nearly 80\% of Ethereum blocks. Block builders have the ability to reorder transactions on the blockchain in a way that can be harmful to participants. We estimate they would pay in the aggregate nearly \$14 million per month to ensure that they remained in the first quartile of the block. Sandwich attacks, in which a transaction is front-run, are frequent, averaging more than one per block. Gas fees on these transactions pay for nearly 15\% of the MEV payments to the validator. These attacks have especially large marginal effects and skew the distribution. Reforms such as gas fee priority or private transaction pools might be helpful.

q-fin.TR↗

arXiv2023

An Event Study of the Ethereum Transition to Proof-of-Stake

On September 15, 2022, the Ethereum network adopted a proof-of-stake (PoS) consensus mechanism. We study the impact on the network and competing platforms in a two month event window around the Beacon chain merge. We find that the transition to PoS has reduced energy consumption by 99.98%. Miners have not transformed into validators, and total block reward income (in USD) has fallen by 97%, though transaction fees (in ETH) for Ether have increased nearly 10%. The Herfindahl index for the top 10 is 1,009; the network is 19% less concentrated after the merge. Ethereum supply growth has been deflationary since the merge. The time between consecutive blocks is now steady at 12 seconds and transactions per day are up 7.0%. On Polygon, Matic fees rose but token fees fell. Polygon also slows, processing 3.3% fewer transactions per day. Solana's fees fall by $0.0003, and transactions per day are down 48%. Stablecoin transfer volumes fall on Ethereum and Polygon, but rise on Solana.

q-fin.TR↗

arXiv2023

Stablecoins: Survivorship, Transactions Costs and Exchange Microstructure

Stable coins are not very stable. Cash collateralized coins are more stable, but the overall failure rate is similar to tokens that are not designed to be stable. USD Coin, Tether and Dai have the largest Ethereum market shares, and they have an average velocity nearly three times higher than M1. Centralized and decentralized exchanges are the most active nodes and largest holders on the blockchain. Four of the top ten tokens have Herfindahl indices higher than the U.S. banking system. Median gas fees for Tether rose more than twelve times over the last two years, and nearly twenty times for USD Coin. Transactions of under 50,000 USD can generally be done more cheaply offchain. 24 hour exchange turnover in Tether is nearly 60 billion USD. This is comparable to the daily volume at the NYSE and eight times the daily flow in money market mutual funds. Narrow bid-ask spreads and depth have attracted HFT participation approaching 50%

q-fin.TR↗