Following the Dencun upgrade, Ethereum's average gas fee plummeted by 95% within a year. The upgrade, implemented on March 13, 2024, merged the Cancun and Deneb upgrades, along with introducing nine Ethereum Improvement Proposals (EIPs). Its main aim was to boost Ethereum's scalability and slash transaction costs for layer-2 networks. Data from YCharts reveals a drop in average gas fees from 72 gwei in 2024 to 2.7 gwei by March 12, 2025. Previously, users incurred high fees for swaps and NFT sales, but now costs have drastically reduced. Despite the fee decrease, Ether's price has dipped by 53% post the Dencun upgrade. The recent Pectra upgrade faced challenges during testing, impacting the mainnet launch. While Pectra aims to enhance data space for layer-2s and reduce costs, Ethereum still grapples with underlying issues affecting its position in the blockchain space.
