Ethereum staking giant Lido reported a 23% decline in annual revenue for 2025, citing a challenging market and increased competition. Total revenue fell to $40.5 million from $52.4 million in 2024. The protocol noted staking outflows and compressed rewards due to competition from institutional services and exchange-based staking. Although total Ethereum staking has increased, Lido has experienced significant outflows even in early 2026. The organization plans to diversify its offerings in 2026 and formalize a $10 million token buyback program in Q2 to strengthen alignment between protocol performance and its native LDO token.
Leading Ethereum staking provider Lido saw its annual revenue fall by 23% year-on-year according to its 2025 report. The protocol’s total revenue was $40.5 million, down from $52.4 million the previous year.
Lido stated that the decline unfolded under a challenging macro landscape and intensified competition. “2025 unfolded under rewards compression driven by staking outflows and a network-wide decline in staking APR,” the Foundation noted.
The protocol attributed the revenue drop to a structural shift in the staking market. “Capital rotation away from Simple LST toward exchange and institutional staking, and intensified competition, reduced the size of the segment where Lido holds category leadership,” it explained.
Total Ethereum staking demand has reached a record 30.7% of the total ETH supply. The increase has been driven by Spot ETH ETFs and treasury firms activating yield features for investors.
Lido has nonetheless faced persistent outflows, leading staking withdrawals in March 2026 with nearly 310,000 ETH leaving the protocol according to Dune data. Even with these outflows, Lido maintains a 24% market share with 8.8 million staked ETH.
For 2026, Lido will focus on diversification, including expanding institutional distribution channels and scaling its validator marketplace. The organization also plans to advance stronger economic alignment between protocol performance and its native LDO token.
Part of this token accrual plan includes an automated buyback via a treasury surplus fund. A $10 million annual budget for this program was proposed last November, with a formal plan expected in Q2 2026. At the time of writing, LDO traded at $0.299, down 80% from its high in the second half of 2025.
