Yes, faded is a Scrabble word!
...and is worth 10 points in Scrabble, and 10 points in Words with Friends
faded
Adjective
1. Having lost freshness or brilliance of color
2. Reduced in strength
Verb
1. Become less clearly visible or distinguishable; disappear gradually or seemingly
2. Lose freshness, vigor, or vitality
3. Disappear gradually
4. Become feeble
What Scrabble words can I make with the letters in faded?
4 Letter Words
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2 Letter Words