What Are Sandwich Attacks?
In a Sandwich attack, malicious actors manipulate the price of a crypto asset on decentralized exchanges (DEXs) by placing two orders around a large transaction. This technique “sandwiches” the victim’s trade, with one order before and another after, allowing the attacker to buy an asset at a lower price and sell it before the victim executes their transaction.
The main objective of these attacks is to manipulate asset prices on DEXs, exploiting the low liquidity of decentralized platforms. As a result, the victim is forced to pay a higher price for the asset, and their transaction becomes less valuable due to the manipulated market conditions.
The Impact of Sandwich Attacks on BSC
Recent data from the analytics platform Dune shows that over the past week, more than 43,000 DEX traders on the BNB Smart Chain have been affected by these attacks. This marks a nine-month high in the number of users impacted. Additionally, 645 active bots executing Sandwich attacks were detected on the BSC network during the same period.
Key Statistics:
- 35.5% of BSC blocks were manipulated by Sandwich attacks in the past month.
- Over 43,000 DEX traders were affected by these attacks in the past week.
- A total of 645 active bots were executing Sandwich attacks on BSC.
- Total DEX volume on BSC last week reached $9.2 million.
The Rise of Sandwich Attacks and BNB’s Surge
The increase in Sandwich attacks coincides with a notable surge in the value of BNB, the native token of the BNB Smart Chain. Over the past month, BNB has risen by 17%, currently trading at $656 with a market cap of $94.5 billion at the time of writing.
This surge in BNB’s price could be a factor influencing the rise in Sandwich attacks, as traders are more likely to engage in high-volume transactions, making the network a target for malicious actors.
Comparing Sandwich Attacks on BNB Smart Chain and Ethereum
While BNB Smart Chain has seen a surge in Sandwich attacks, Ethereum has experienced a decline in similar incidents. Over the past five months, the percentage of Sandwich attacks on Ethereum has dropped from 62.9% to 40.2%.
In contrast, Ethereum still faces its own challenges, with over 12,000 DEX users impacted by these attacks over the past month. Despite this, Ethereum’s decline in attack frequency indicates that the network may be taking steps toward mitigating such threats.
Conclusion: What This Means for DEX Traders
The rise in Sandwich attacks on the BNB Smart Chain highlights the ongoing security challenges faced by decentralized exchanges. Traders should remain vigilant and consider using protective measures, such as slippage settings and decentralized exchange (DEX) aggregators, to reduce the risk of falling victim to these manipulative strategies.
As both BNB and Ethereum continue to evolve, it’s clear that the need for enhanced security measures on DEXs is critical to safeguarding traders and ensuring the long-term health of these networks.
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