Gas fees (transaction costs) on the Ethereum blockchain have fallen below 1 gwei (around $0.06). This has sparked active discussions among crypto community members who have tried to figure out the reasons for the drop.

According to experts, the main reason for the decrease in gas fees on the Ethereum blockchain could be the increased use of second-layer networks, including Arbitrum, Optimism, and Polygon, as well as the growing popularity of first-layer blockchains Solana , BNB Chain, Tron , Avalanche, and Cardano .

According to a report from JPMorgan, ETH has performed the worst this cycle due to “intense” competition from other blockchains and a lack of demand like Bitcoin .

While the Ethereum blockchain team has already implemented the Dencun upgrade and developers will begin testing the Pectra fork in February, analysts said most of the activity has already moved to second-layer networks.

According to them, Uniswap , one of the largest gas-consuming protocols on the Ethereum network, is also migrating to Unichain. This could deal a serious blow to the Ethereum rate , which has fallen by almost 20% over the past seven days.