Ethereum's Recentralizing Trend: Block Builders Control 93% of Activity

A recent study by CEPR and a University of Turin-linked research group has found that Ethereum's block builders control an astonishing 93% of activity on the network. The report, titled 'Can Blockchain Decentralize Money, Contracts, and Finance?', warns that decentralized finance (DeFi) is evolving towards recentralization driven by maximal extractable value (MEV) and structural inefficiencies.

The study argues that while DeFi removes traditional gatekeepers, it recreates familiar frictions such as information asymmetry and order manipulation under new names and with crypto-native tooling. The authors highlight two recurring patterns: the transfer of value from slower participants to faster ones, and transaction reordering through MEV.

The report contends that MEV represents a transfer rather than a net gain for the market, generating no broader social surplus. If such behavior becomes pervasive, it could discourage ordinary users from trading on-chain, reducing participation and harming market quality in venues that depend on continuous order flow and liquidity.