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

ambcryptoPublished on 2026-03-25Last updated on 2026-03-25

Abstract

Lido, a leading Ethereum staking provider, reported a 23% year-on-year decline in annual revenue, falling to $40.5 million in 2025 from $52.4 million the previous year. The drop is attributed to staking outflows, a network-wide decrease in staking APR, and intensified competition from exchange and institutional staking services. Despite a broader surge in staking demand—driven by Spot ETH ETFs and corporate treasury activity—Lido experienced significant outflows, including 310,000 ETH in March 2026 alone. However, it maintained a dominant 24% market share with 8.8 million staked ETH. Looking ahead, Lido plans to diversify by expanding institutional distribution channels, scaling its validator marketplace, and enhancing its Lido Earn product. Additionally, the protocol aims to strengthen economic alignment with its LDO token through a proposed $10 million annual buyback program, expected to be formalized in Q2 2026. At the time of reporting, LDO was trading at $0.299, down 80% from its mid-2025 peak.

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.

Source: Lido

Lido’s market lead faces headwinds

Commenting on the revenue drop, Lido noted,

2025 unfolded under rewards compression driven by staking outflows and a network-wide decline in staking APR.

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

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.

Source: Lido

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.

Source: Dune

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.

Source: Lido

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.

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Related Questions

QWhat was the percentage decline in Lido's annual revenue from 2024 to 2025, and what were the total revenue figures for those years?

ALido's annual revenue declined by 23% year-on-year, from $52.4 million in 2024 to $40.5 million in 2025.

QWhat two main reasons did Lido cite for the decline in its revenue and the staking outflows?

ALido cited rewards compression driven by staking outflows and a network-wide decline in staking APR, which were further fueled by a structural shift towards exchange and institutional staking.

QDespite the outflows, what market share of the total ETH staking market did Lido maintain?

ALido maintained its dominant market share at 24%, representing 8.8 million staked ETH.

QWhat are Lido's three main areas of focus for diversification in 2026?

ALido's focus for 2026 includes doubling down on institutional distribution channels for low-risk staking, expanding its Lido Earn product, and scaling its validator marketplace.

QWhat is the key feature of the LDO token alignment plan, and when is a formal proposal for it expected?

AA key feature of the plan is an automated token buyback via a 'treasury surplus fund' with an annual budget of $10 million. A formal proposal for this is expected in Q2 2026.

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