Lido: Revenue down 40%, market share intact – New report highlights mixed signals

Ethereum staking provider Lido has reported a decline in annual revenue, citing a challenging macro landscape and competition. 

In its 2025 annual report, the Lido Foundation said that the protocol’s total revenue was $40.5 million, down from $52.4 million reached in 2024—a 23% decline in revenue on a year-on-year (YoY) basis. 

Lido’s market lead faces headwinds

Commenting on the revenue drop, Lido noted, 

Regarding staking outflows, the protocol noted that this was further fueled by a structural shift towards exchange and institutional staking. 

Well, the staking demand has soared in recent months, reaching a record 30.7% of total ETH supply (38.2 million staked ETH). The uptick was driven by Spot ETH ETFs and treasury firms activating the yield feature for their investors. 

In contrast, Lido’s outflows haven’t abated even in 2026. In March alone, Lido led the staking outflows, with nearly 310K ETH leaving the protocol. 

Even so, Lido maintained its dominant market share at 24% (8.8 million staked ETH). However, it will focus on diversification in 2026. 

These will include doubling down on institutional distribution channels for low-risk staking segments (e.g., via WisdomTree Physical Lido Staked Ether), expanding its Lido Earn product, and scaling its validator marketplace. 

LDO token alignment plans

Lido also noted that it will advance ‘stronger economic alignment’ between the protocol performance and LDO. According to ongoing discussions, part of the token accrual plan will include automated token buyback via a ‘treasury surplus fund.’ 

This proposal was floated last November, with an annual budget of $10 million for the buyback program. A formal plan for the same is expected in Q2 2026, but it remains to be seen how LDO, the protocol’s native token, will react to the update. 

At the time of writing, LDO traded at $0.299 and was down 80% from the H2 2025 high of $1.5. 

Final Summary

• Lido revenue dropped by 23% to $40.5M amid rising staking competition from spot ETH ETFs, treasury firms, and centralized exchanges.
• LDO token alignment and the $10M buyback program are expected to be formalized in Q2 2026.