Shovel makers benefit the most in a gold rush, and crypto trends are no different.

Sandwich bots are frontrunning punters of newly-issued tokens such as pepe (PEPE) and chad (CHAD) – memecoins with no intrinsic value that caught wind of Crypto Twitter degens almost overnight as the tokens zooted over 10,000%.

A sandwich attack, traps a user's transaction between two transactions, which is then further manipulated to gain profits. This is done by frontrunning the victim's trade by buying the same asset, and then selling tokens to the victim in the same trade for a slightly higher price.

Sandwich attackers aren’t typically a form of exploit but are looked upon in crypto circles as a type of predatory behavior, which skims value from users, leads to a spike in gas fees and doesn’t benefit either the network or the user.

The victim might not notice it, but for sandwich bots, the gains can run into millions of dollars as they target thousands of wallets and skim a few dollars each time.

A wallet named “Jaredfromsubway.eth,” a likely nod to the popular sandwich chain, has spent over $2 million in the past week on Ethereum network fees trying to sandwich traders punting on predominantly low-cap tokens.

That has driven up fees of the entire network, data from Dune Analytics shows. Each transaction on the Ethereum network costs over $10 as of Asian morning hours on Wednesday – ten times more than last week’s $1 level.

Chart

Gas fees have spiked. (Dune)

The actions of Jaredfromsubway.eth mean they spent 7% of all fees on Ethereum in the past 24 hours, the data shows, becoming the top spender on the network.

That is ahead of fees spent by Arbitrum, a layer 2 blockchain that batches transactions on the Ethereum network, and Uniswap, the most-used decentralized exchange.

It is unclear how much Jaredfromsubway.eth made from their frontrunning actions, but given they spent a significant amount – and continue to do so – the gains likely exceed costs by a significant amount.

Meanwhile, the pepe frenzy is on in full force. Pepe tokens nearly doubled in the past 24 hours as Crypto Twitter traders moved over their doge-themed token obsession to bet on the internet meme instead, as CoinDesk reported.

Scores of pepe wannabes have popped up as well, as have chad, wojak, and babypepe – each a nod to internet memes.

Most of these are unlikely to last beyond a few weeks. But unlike then, entities like Jaredlikesubway.eth is eating the gains while fresh.


All writers’ opinions are their own and do not constitute financial advice in any way whatsoever. Nothing published by CoinDesk constitutes an investment recommendation, nor should any data or Content published by CoinDesk be relied upon for any investment activities. CoinDesk strongly recommends that you perform your own independent research and/or speak with a qualified investment professional before making any financial decisions.

Recommended content


Recommended Content

Editors’ Picks

COTI price surges on Central Bank of Israel CBDC project participation

COTI price surges on Central Bank of Israel CBDC project participation

COTI (COTI) price retraces by 1.2% at $0.1125 at the time of writing on Wednesday after breaking above a descending wedge pattern last Friday, leading to an 8% rally over the subsequent four days. 

More Cryptocurrencies News

Bitcoin price could react to potential clash between Kamala Harris and Donald Trump at July Bitcoin Conference

Bitcoin price could react to potential clash between Kamala Harris and Donald Trump at July Bitcoin Conference

Bitcoin price struggles around $66,000 on Wednesday. US spot Bitcoin ETFs experienced minor outflows on Tuesday, coinciding with the continued movement of Mt. Gox funds for repayment, which could exert downward pressure on Bitcoin's price.

More Bitcoin News

Solana hovers around $180, resists sell-off despite $22 million SOL transfer

Solana hovers around $180, resists sell-off despite $22 million SOL transfer

Solana whale transferred nearly 124,000 SOL tokens to Binance on Monday. The $22 million transfer could contribute to selling pressure on Solana, raising concerns among traders. 

More Solana News

PEPE price poised for a rally after retesting trendline support

PEPE price poised for a rally after retesting trendline support

Pepe price breaks out of the descending channel pattern, signaling a change in market structure from bearish to bullish. On-chain data shows that PEPE's Long-to-Short ratio is 1.66, suggesting a bullish bias.

More PEPE News

Bitcoin: Will BTC continue its bullish momentum?

Bitcoin: Will BTC continue its bullish momentum?

Bitcoin (BTC) price increased by 5.5% this week until Friday after breaking above a descending trendline. Currently, it is trading slightly higher by 0.23% at $64,166.

Read full analysis

BTC

ETH

XRP