Ethereum Gas Fees Drop 95%, But ETH Price Falls 53%

A twelvemonth since Ethereum’s Dencun upgrade, the network’s mean state interest has fallen by 95%, making transactions importantly cheaper.

The upgrade, which went unrecorded connected March 13, 2024, merged 2 important upgrades: the Cancun upgrade for Ethereum’s execution furniture and the Deneb upgrade for its statement layer.

Together, they introduced 9 Ethereum Improvement Proposals (EIPs) aimed astatine reducing transaction costs and improving scalability, particularly for layer-2 networks similar Arbitrum, Optimism, and zkSync.

Ethereum mean state fee, Source: ycharts.

Prior to the upgrade, state fees were retired of control. During 2024, the mean Ethereum state terms was astir 72 gwei. As of March 12, 2025, it had plummeted to a specified 2.7 gwei, based connected figures provided by YCharts. This makes mean transactions importantly little expensive.

For instance, past year, token swapping connected Ethereum was costing astir $86 successful fees, and selling NFTs was costing astir $145 successful state fees. But now, a emblematic token swap lone costing $0.39, portion selling an NFT is costing astir $0.65, arsenic per statistic from Etherscan.

ETH Price Chart, Source: CoinMarketCap

Although state prices person decreased considerably, Ether’s (ETH) terms has dipped 53% since the upgrade. ETH traded astatine $4,070 successful March 2024, but currently, aft a year, stands astatine astir $1,891, arsenic per CoinGecko.

Build connected Bitcoin (BOB) co-founder Dominik Harz thinks Ethereum is successful trouble. He mentioned however the caller terms diminution erased each the DeFi Total Value Locked (TVL) gains since Trump’s election.

He besides stated that Ethereum has had a pugnacious mates of months, whereas Solana has experienced precocious levels of activity, particularly with memecoins.

Ethereum’s upcoming large upgrade, Pectra, is already running into issues. The upgrade was released connected the Sepolia testnet connected March 5, 2025, but developers began experiencing errors. Blocks were mined with zero transactions, and mistake messages kept popping up.

Ethereum developer Marius van der Wijden confirmed that they rolled retired a patch, yet idiosyncratic chartless initiated the aforesaid mistake again and much issues appeared. The Ethereum squad stabilized the testnet astatine last, and the transactions are being processed normally.

Also Read: Why is ETH Price Crashing? Are We Headed to $1,000 Now?