The average gas fee for Ethereum has seen a remarkable decline of 95% since the implementation of the Dencun upgrade a year ago, as reported by Etherscan. As of March 12, 2025, an average swap costs approximately $0.39 in fees, compared to around $86 a year earlier. The Dencun upgrade, which was undertaken in March 2024, integrated the Cancun upgrade on the execution layer with the Deneb upgrade on the consensus layer, and introduced nine Ethereum Improvement Proposals aimed at enhancing scalability and reducing costs for layer-2 networks. Despite the significant drop in gas fees, Ethereum's price has fallen by 53% since the upgrade, dropping from over $4,070 at the time to about $1,891. Concerns have been raised regarding Ethereum's competitiveness in the DeFi space, with comments from industry leaders suggesting that it is losing its position as the preferred platform for developers, particularly with the introduction of new competitors like Solana.

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