• Home
• Lido Revenue Falls 23% in 2025 as Staking Competition Intensifies

Lido Revenue Falls 23% in 2025 as Staking Competition Intensifies

Lido Reports 23% Revenue Decline in 2025 – Market Share Holds at 24% Amid Staking Competition

Key Takeaways

• Lido’s annual revenue fell to $40.5 million in 2025, down from $52.4 million in 2024, a 23% year on year decline.
• The protocol cited rewards compression, staking outflows, and increased competition from exchanges and institutional providers.
• Despite outflows, Lido maintained a 24% market share with 8.8 million ETH staked.
• Lido is preparing a formal token alignment plan, including a proposed $10 million annual buyback program expected in Q2 2026.

Revenue Declines as Staking Environment Tightens

Lido reported total revenue of $40.5 million for 2025, according to its annual report. This marks a decline from $52.4 million in 2024, representing a 23% decrease on a year on year basis.

The protocol attributed the revenue drop to a challenging macro landscape and what it described as rewards compression. According to the report, 2025 unfolded under pressure from staking outflows and a network wide decline in staking annual percentage rates. Lower staking yields directly affect revenue for staking providers, as protocol income is tied to rewards generated from staked assets.

Lido stated that staking outflows were also influenced by a structural shift in the market. Capital rotated away from what the report calls Simple LST toward exchange based and institutional staking solutions. As a result, the segment in which Lido holds category leadership became smaller.

Competition From Exchanges and Institutional Channels Intensifies

The annual report highlights intensified competition as a key factor behind the revenue decline. Lido noted that exchange and institutional staking products gained traction, reducing the share of capital allocated to its liquid staking offering.

This shift occurred even as overall Ethereum staking demand increased. According to the data cited in the report, staking reached a record 30.7% of the total ETH supply, equivalent to 38.2 million staked ETH. The increase was driven by Spot ETH ETFs and treasury firms activating yield features for investors.

While total staked ETH grew at the network level, Lido experienced continued outflows. In March 2026 alone, nearly 310,000 ETH left the protocol, making it the largest source of staking outflows during that period, based on data referenced from Dune.

For users evaluating staking options, these figures indicate that overall demand for Ethereum staking remains strong, but the distribution of that demand across providers is shifting. Exchange integrated and institutional channels are capturing a larger share of inflows.

Market Share Remains at 24% Despite Outflows

Despite revenue pressure and staking outflows, Lido maintained a 24% share of the Ethereum staking market. The protocol currently holds 8.8 million staked ETH.

Maintaining this share in an environment of rising competition suggests that Lido remains the largest single staking provider within its category. However, the report makes clear that leadership is being challenged by alternative distribution channels and product structures.

To address this, Lido outlined a diversification strategy for 2026. The foundation stated that it plans to expand institutional distribution channels for low risk staking segments. One example referenced in the report is the WisdomTree Physical Lido Staked Ether product.

In addition, Lido intends to expand its Lido Earn product and scale its validator marketplace. These initiatives are positioned as part of a broader effort to adapt to the changing structure of staking demand.

LDO Token Alignment and Proposed Buyback Program

Alongside operational updates, Lido addressed plans to strengthen economic alignment between the protocol’s performance and its native token, LDO.

The foundation stated that ongoing discussions include a token accrual plan featuring automated token buybacks through a treasury surplus fund. A proposal for this mechanism was first floated in November, outlining an annual budget of $10 million for buybacks.

A formalized plan is expected in the second quarter of 2026. At the time of reporting, LDO was trading at $0.299. The token is down 80% from its second half 2025 high of $1.5.

The proposed buyback structure would link treasury surplus to token repurchases, creating a direct connection between protocol revenue generation and token supply dynamics. The final design and implementation details are scheduled to be clarified later this year.

Shifting Staking Flows in a Growing Market

The data presented in Lido’s annual report shows a mixed picture. On one hand, Ethereum staking participation has reached a record level, with 38.2 million ETH staked across the network. On the other hand, Lido’s revenue declined and the protocol experienced sustained outflows.

The divergence between overall network growth and Lido’s financial performance reflects changes in how staking services are accessed. Spot ETH ETFs and treasury firms enabling yield for investors have contributed to growth in institutional and exchange based staking channels.

For market participants comparing staking providers, the figures illustrate how market share, revenue, and total network participation can move in different directions at the same time. Lido remains the largest single provider by staked ETH, yet faces pressure from alternative models.

Our Assessment

Lido’s 2025 results show a 23% revenue decline to $40.5 million, driven by rewards compression, staking outflows, and stronger competition from exchange and institutional staking channels. Despite these pressures, the protocol maintained a 24% market share with 8.8 million ETH staked. The foundation plans to diversify distribution, expand product offerings, and formalize a $10 million annual token buyback program in Q2 2026 to strengthen economic alignment between protocol performance and the LDO token.