New research from CEPR and the University of Turin reveals that 93% of Ethereum block construction is controlled by just three block builders, signaling a shift toward recentralization in decentralized finance (DeFi). This concentration challenges the core DeFi promise of decentralization, as specialized firms exploit transaction ordering and maximal extractable value (MEV) to capture profits, potentially reducing market fairness and participation. The study also highlights that tokenizing real-world assets still depends on centralized trust points, complicating legal and ownership claims. These findings urge regulators and market participants, especially in regions like South Korea, to focus on transparency, enforceability, and managing new intermediaries to preserve DeFi’s open access and efficiency benefits.
