In a significant turn of events for the Ethereum blockchain, the average gas fee has plummeted by an impressive 95% since the rollout of the Dencun upgrade, which launched on March 13, 2024. This upgrade, a pivotal enhancement for Ethereum, merged two crucial improvements: the Cancun upgrade on the execution layer and the Deneb upgrade on the consensus layer. As part of this transformative initiative, nine Ethereum Improvement Proposals (EIPs) were introduced, primarily aiming to boost Ethereum’s scalability and reduce transaction costs associated with layer-2 solutions.
According to data from YCharts, Ethereum’s average gas fee saw a remarkable drop from 72 gwei at the start of 2024 to only 2.7 gwei by March 12, 2025. To put this into perspective, the average fee for a swap last year was about , while non-fungible tokens (NFTs) came with an average gas fee of 5. Fast forward to today, and that same swap now costs just [openai_gpt model=”gpt-4o-mini” prompt=”You are a news reporter covering the cryptocurrency industry. Given the article description, provide an introductory overview of the news in an informative style. AVOID using overly technical terms or details! DO NOT offer recomendations to buy or sell any assets! Analyze from a fact-based perspective and bring in additional research when claims are made. Write this overview with creativity and flair, ensuring it reads like a human-written text and incorporates keywords in a natural way for SEO optimization. Generate HTML-formatted content using only
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tags. Exclude headings and other HTML tags. DO NOT include a ‘Conclusion’ section! Here is the product description: ‘The average Ethereum gas fee has dropped by 95% in the year following the Dencun upgrade, one of Ethereum’s most significant network improvements.On March 13, 2024, Ethereum’s Dencun upgrade was rolled out. The upgrade combined the Cancun upgrade on the execution layer and the Deneb upgrade on the consensus layer. It also introduced nine Ethereum Improvement Proposals (EIPs).The primary goal was to enhance Ethereum’s scalability and reduce transaction costs for layer-2 networks. According to YCharts data, Ethereum’s average gas fee has fallen from 72 gwei in 2024 to just 2.7 gwei as of March 12, 2025.Last year, an average swap cost users $86 in fees, while non-fungible token sales averaged $145 in gas fees. At the time of writing, Etherscan data showed that an average swap would cost $0.39, while an NFT sale would average $0.65. Ethereum average gas fee. Source: YCharts Ether price has dropped 53% since the Dencun UpgradeDespite the sharp drop in gas fees, Ether (ETH) price has declined by 53% since the Dencun upgrade.During the upgrade in March 2024, ETH was trading above $4,070. One year later, as of March 13, 2025, ETH was valued at around $1,891, according to CoinGecko data.Ether’s 1-year price chart. Source: CoinGeckoIn a statement sent to Cointelegraph, Dominik Harz, the co-founder of hybrid layer-2 Build on Bitcoin (BOB), said Ethereum has “underperformed” recently:“Monday’s price drop erased all DeFi TVL gains since Trump’s election. Between Solana’s memecoin frenzy and Ethereum’s fractured few months, it’s clear the industry is searching for a new, more sustainable and secure frontier for DeFi.” Related: More than 50% of validators signal to increase ETH gas limitUpcoming Pectra upgrade sees hiccupsOn March 5, Ethereum’s next major upgrade, Pectra, rolled out on its final testnet, Sepolia. However, the team started seeing error messages and empty blocks being mined.Ethereum developer Marius van der Wijden confirmed that a fix was deployed, but an unknown user later triggered the same error, leading to further issues. The development team has since managed to stabilize the testnet and successfully process transactions.Harz said that while these testnet issues are “disrupting the mainnet launch,” they are far from Ethereum’s biggest problems. The executive said that once Pectra goes live, it will double the available data space for layer-2s, reduce costs and increase execution capacity. “While that’s a step in the right direction, the reality is that Ethereum is quickly losing its position as the go-to chain for builders, and Pectra isn’t the fix-all solution to its deeper issues,” Harz said. Magazine: Crypto fans are obsessed with longevity and biohacking: Here’s why'”].39, while an NFT sale amounts to around [openai_gpt model=”gpt-4o-mini” prompt=”You are a news reporter covering the cryptocurrency industry. Given the article description, provide an introductory overview of the news in an informative style. AVOID using overly technical terms or details! DO NOT offer recomendations to buy or sell any assets! Analyze from a fact-based perspective and bring in additional research when claims are made. Write this overview with creativity and flair, ensuring it reads like a human-written text and incorporates keywords in a natural way for SEO optimization. Generate HTML-formatted content using only
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tags. Exclude headings and other HTML tags. DO NOT include a ‘Conclusion’ section! Here is the product description: ‘The average Ethereum gas fee has dropped by 95% in the year following the Dencun upgrade, one of Ethereum’s most significant network improvements.On March 13, 2024, Ethereum’s Dencun upgrade was rolled out. The upgrade combined the Cancun upgrade on the execution layer and the Deneb upgrade on the consensus layer. It also introduced nine Ethereum Improvement Proposals (EIPs).The primary goal was to enhance Ethereum’s scalability and reduce transaction costs for layer-2 networks. According to YCharts data, Ethereum’s average gas fee has fallen from 72 gwei in 2024 to just 2.7 gwei as of March 12, 2025.Last year, an average swap cost users $86 in fees, while non-fungible token sales averaged $145 in gas fees. At the time of writing, Etherscan data showed that an average swap would cost $0.39, while an NFT sale would average $0.65. Ethereum average gas fee. Source: YCharts Ether price has dropped 53% since the Dencun UpgradeDespite the sharp drop in gas fees, Ether (ETH) price has declined by 53% since the Dencun upgrade.During the upgrade in March 2024, ETH was trading above $4,070. One year later, as of March 13, 2025, ETH was valued at around $1,891, according to CoinGecko data.Ether’s 1-year price chart. Source: CoinGeckoIn a statement sent to Cointelegraph, Dominik Harz, the co-founder of hybrid layer-2 Build on Bitcoin (BOB), said Ethereum has “underperformed” recently:“Monday’s price drop erased all DeFi TVL gains since Trump’s election. Between Solana’s memecoin frenzy and Ethereum’s fractured few months, it’s clear the industry is searching for a new, more sustainable and secure frontier for DeFi.” Related: More than 50% of validators signal to increase ETH gas limitUpcoming Pectra upgrade sees hiccupsOn March 5, Ethereum’s next major upgrade, Pectra, rolled out on its final testnet, Sepolia. However, the team started seeing error messages and empty blocks being mined.Ethereum developer Marius van der Wijden confirmed that a fix was deployed, but an unknown user later triggered the same error, leading to further issues. The development team has since managed to stabilize the testnet and successfully process transactions.Harz said that while these testnet issues are “disrupting the mainnet launch,” they are far from Ethereum’s biggest problems. The executive said that once Pectra goes live, it will double the available data space for layer-2s, reduce costs and increase execution capacity. “While that’s a step in the right direction, the reality is that Ethereum is quickly losing its position as the go-to chain for builders, and Pectra isn’t the fix-all solution to its deeper issues,” Harz said. Magazine: Crypto fans are obsessed with longevity and biohacking: Here’s why'”].65, as noted by Etherscan.
“Monday’s price drop erased all DeFi TVL gains since Trump’s election,” said Dominik Harz, co-founder of hybrid layer-2 Build on Bitcoin (BOB), highlighting the turbulent landscape Ethereum is currently navigating.
However, the downturn in gas fees comes amidst a concerning 53% drop in the price of Ether (ETH) since the Dencun upgrade. When the upgrade was launched, ETH was trading above ,070, but by March 13, 2025, its value had dropped to approximately ,891, as reported by CoinGecko. Harz’s commentary reveals a broader sentiment of unease in the industry, where Ethereum appears to be losing its primary influence, overshadowed by rival platforms like Solana.
The anticipation around Ethereum’s upcoming Pectra upgrade further underscores this market dynamic. Launched on March 5 on its final testnet, Sepolia, the Pectra upgrade experienced technical glitches, including error messages and empty blocks being mined. Ethereum developer Marius van der Wijden confirmed a fix was implemented, yet similar issues resurfaced later. While the development team has stabilized the testnet, concerns linger about its impact on the mainnet launch. Harz expressed cautious optimism, noting that despite these teething issues, once Pectra is operational, it should enhance data capacity for layer-2s, reduce operational costs, and improve execution efficiency.
“Ethereum is quickly losing its position as the go-to chain for builders,” Harz cautioned, indicating the need for more comprehensive solutions to address deeper challenges within the network.
As the cryptocurrency space continues to evolve, Ethereum’s journey reflects both significant advancements and the hurdles that accompany groundbreaking technological improvements.
Ethereum’s Dencun Upgrade: Impact on Gas Fees and Ether Price
The recent Dencun upgrade has significantly altered the dynamics of Ethereum’s network, particularly concerning gas fees and Ether’s value. Here are the key points:
- Gas Fee Reduction:
- The average Ethereum gas fee has dropped by 95% since the Dencun upgrade, from 72 gwei to 2.7 gwei.
- Typical transaction costs for users have decreased dramatically, making Ethereum more accessible.
- Impact on Transactions:
- Average swap fees decreased from to [openai_gpt model=”gpt-4o-mini” prompt=”Based on the article content, generate a list of key points in an HTML format using Bold, UL/OL. Focus solely on the most important aspects, and describe how they might be related or impact the readers life if at all. Begin with a title using
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tags. DO NOT include a ‘Conclusion’ section! Here is the topic description: ‘The average Ethereum gas fee has dropped by 95% in the year following the Dencun upgrade, one of Ethereum’s most significant network improvements.On March 13, 2024, Ethereum’s Dencun upgrade was rolled out. The upgrade combined the Cancun upgrade on the execution layer and the Deneb upgrade on the consensus layer. It also introduced nine Ethereum Improvement Proposals (EIPs).The primary goal was to enhance Ethereum’s scalability and reduce transaction costs for layer-2 networks. According to YCharts data, Ethereum’s average gas fee has fallen from 72 gwei in 2024 to just 2.7 gwei as of March 12, 2025.Last year, an average swap cost users $86 in fees, while non-fungible token sales averaged $145 in gas fees. At the time of writing, Etherscan data showed that an average swap would cost $0.39, while an NFT sale would average $0.65. Ethereum average gas fee. Source: YCharts Ether price has dropped 53% since the Dencun UpgradeDespite the sharp drop in gas fees, Ether (ETH) price has declined by 53% since the Dencun upgrade.During the upgrade in March 2024, ETH was trading above $4,070. One year later, as of March 13, 2025, ETH was valued at around $1,891, according to CoinGecko data.Ether’s 1-year price chart. Source: CoinGeckoIn a statement sent to Cointelegraph, Dominik Harz, the co-founder of hybrid layer-2 Build on Bitcoin (BOB), said Ethereum has “underperformed” recently:“Monday’s price drop erased all DeFi TVL gains since Trump’s election. Between Solana’s memecoin frenzy and Ethereum’s fractured few months, it’s clear the industry is searching for a new, more sustainable and secure frontier for DeFi.” Related: More than 50% of validators signal to increase ETH gas limitUpcoming Pectra upgrade sees hiccupsOn March 5, Ethereum’s next major upgrade, Pectra, rolled out on its final testnet, Sepolia. However, the team started seeing error messages and empty blocks being mined.Ethereum developer Marius van der Wijden confirmed that a fix was deployed, but an unknown user later triggered the same error, leading to further issues. The development team has since managed to stabilize the testnet and successfully process transactions.Harz said that while these testnet issues are “disrupting the mainnet launch,” they are far from Ethereum’s biggest problems. The executive said that once Pectra goes live, it will double the available data space for layer-2s, reduce costs and increase execution capacity. “While that’s a step in the right direction, the reality is that Ethereum is quickly losing its position as the go-to chain for builders, and Pectra isn’t the fix-all solution to its deeper issues,” Harz said. Magazine: Crypto fans are obsessed with longevity and biohacking: Here’s why'”].39.
- Average NFT sale fees dropped from 5 to [openai_gpt model=”gpt-4o-mini” prompt=”Based on the article content, generate a list of key points in an HTML format using Bold, UL/OL. Focus solely on the most important aspects, and describe how they might be related or impact the readers life if at all. Begin with a title using
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tags. DO NOT include a ‘Conclusion’ section! Here is the topic description: ‘The average Ethereum gas fee has dropped by 95% in the year following the Dencun upgrade, one of Ethereum’s most significant network improvements.On March 13, 2024, Ethereum’s Dencun upgrade was rolled out. The upgrade combined the Cancun upgrade on the execution layer and the Deneb upgrade on the consensus layer. It also introduced nine Ethereum Improvement Proposals (EIPs).The primary goal was to enhance Ethereum’s scalability and reduce transaction costs for layer-2 networks. According to YCharts data, Ethereum’s average gas fee has fallen from 72 gwei in 2024 to just 2.7 gwei as of March 12, 2025.Last year, an average swap cost users $86 in fees, while non-fungible token sales averaged $145 in gas fees. At the time of writing, Etherscan data showed that an average swap would cost $0.39, while an NFT sale would average $0.65. Ethereum average gas fee. Source: YCharts Ether price has dropped 53% since the Dencun UpgradeDespite the sharp drop in gas fees, Ether (ETH) price has declined by 53% since the Dencun upgrade.During the upgrade in March 2024, ETH was trading above $4,070. One year later, as of March 13, 2025, ETH was valued at around $1,891, according to CoinGecko data.Ether’s 1-year price chart. Source: CoinGeckoIn a statement sent to Cointelegraph, Dominik Harz, the co-founder of hybrid layer-2 Build on Bitcoin (BOB), said Ethereum has “underperformed” recently:“Monday’s price drop erased all DeFi TVL gains since Trump’s election. Between Solana’s memecoin frenzy and Ethereum’s fractured few months, it’s clear the industry is searching for a new, more sustainable and secure frontier for DeFi.” Related: More than 50% of validators signal to increase ETH gas limitUpcoming Pectra upgrade sees hiccupsOn March 5, Ethereum’s next major upgrade, Pectra, rolled out on its final testnet, Sepolia. However, the team started seeing error messages and empty blocks being mined.Ethereum developer Marius van der Wijden confirmed that a fix was deployed, but an unknown user later triggered the same error, leading to further issues. The development team has since managed to stabilize the testnet and successfully process transactions.Harz said that while these testnet issues are “disrupting the mainnet launch,” they are far from Ethereum’s biggest problems. The executive said that once Pectra goes live, it will double the available data space for layer-2s, reduce costs and increase execution capacity. “While that’s a step in the right direction, the reality is that Ethereum is quickly losing its position as the go-to chain for builders, and Pectra isn’t the fix-all solution to its deeper issues,” Harz said. Magazine: Crypto fans are obsessed with longevity and biohacking: Here’s why'”].65.
- Ether Price Decline:
- Despite the reduction in gas fees, Ether (ETH) price has fallen by 53% since the upgrade, from over ,070 to around ,891.
- The decrease in price indicates a potential disconnect between Ethereum’s operational costs and its market valuation.
- Future Upgrades:
- The upcoming Pectra upgrade aims to address scalability and cost issues further.
- Currently facing hiccups during its testnet phase, which could delay its mainnet launch.
- Industry Perspective:
- Concerns from industry professionals highlight Ethereum’s struggles to maintain its status as the leading platform for decentralized finance (DeFi).
- There is a search for sustainable solutions amid competition from other platforms like Solana.
“Ethereum is quickly losing its position as the go-to chain for builders, and Pectra isn’t the fix-all solution to its deeper issues.” – Dominik Harz
Ethereum’s Dencun Upgrade: A Double-Edged Sword in the Crypto Landscape
In a significant shift for Ethereum, the average gas fees plunged by 95% following the Dencun upgrade, marking a remarkable achievement for the network’s efficiency. However, this improvement is juxtaposed with the stark reality of Ether’s plunging price, dropping 53% since the upgrade’s deployment. This duality creates a competitive landscape where Ethereum’s advancements in scalability and reduced costs must be evaluated against its declining market value.
Comparative Advantages: The Dencun upgrade undoubtedly positions Ethereum more favorably compared to other blockchain platforms. While competitors like Solana and Binance Smart Chain also tout low transaction fees, Ethereum’s investment in the long-term scalability by incorporating the Cancun and Deneb upgrades, along with nine new Ethereum Improvement Proposals (EIPs), gives it a unique edge. The reduced fees bring it closer to mainstream usability, especially for layer-2 networks and decentralized finance (DeFi) applications, making Ethereum a more attractive choice for developers aiming to minimize user costs.
Potential Disadvantages: However, the stark decrease in Ether’s price since the upgrade may deter new investors and developers. With concerns voiced by industry leaders like Dominik Harz regarding Ethereum’s waning attractiveness, this may affect user trust in the platform. As Ethereum grapples with a diminished value and ongoing issues in upcoming upgrades—such as the hiccups observed during the Pectra testnet—the narrative of stability and reliability, essential for attracting new projects, becomes increasingly fragile.
Target Beneficiaries and Challenges: The primary beneficiaries of the recent gas fee reductions are users engaged in DeFi and NFT transactions, who will now face significantly lower transactions costs. This could potentially revitalize interest in Ethereum-based applications. However, the prevailing low Ether price may discourage speculative investors and new market entrants from engaging with Ethereum, giving competing platforms an advantage in attracting a wider user base. As Ethereum navigates this complex landscape, the repercussions of both the Dencun upgrade and ongoing market challenges will shape the trajectory for both existing users and new adopters in the fast-evolving crypto ecosystem.
