(adjective)
having lost strength or intensity and thus become weaker or somehow less over time;
e.g. I have a faded memory of a conversation from many years ago.
(verb)
gradually grew more faint, losing color, brightness, or intensity, often to the point of disappearing;
e.g. The paint had faded from a vibrant emerald green to a dull dusty green.
(verb)
gradually merged into something else, usually by becoming weaker while the other thing became stronger, especially in the context of the transition between shots in TV shows or movies (usually used as "faded in/out");
e.g. The title of the movie faded out and then we were shown a shot of the family house.