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

Ethereum staking supplier Lido has reported a decline in annual income, citing a difficult macro panorama and competitors. 

In its 2025 annual report, the Lido Basis stated that the protocol’s whole income was $40.5 million, down from $52.4 million reached in 2024—a 23% decline in income on a year-on-year (YoY) foundation. 

Lido’s market lead faces headwinds

Commenting on the income drop, Lido famous, 

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

Relating to staking outflows, the protocol famous that this was additional fueled by a structural shift in the direction of trade and institutional staking. 

Capital rotation away from Easy LST towards trade and institutional staking, and intensified competitors, lowered the scale of the section the place Lido holds class management.

Properly, the staking demand has soared in current months, reaching a document 30.7% of whole ETH provide (38.2 million staked ETH). The uptick was pushed by Spot ETH ETFs and treasury companies activating the yield function for his or her buyers. 

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

Even so, Lido maintained its dominant market share at 24% (8.8 million staked ETH). Nonetheless, it’ll deal with diversification in 2026. 

These will embody doubling down on institutional distribution channels for low-risk staking segments (e.g., by way of WisdomTree Bodily Lido Staked Ether), increasing its Lido Earn product, and scaling its validator market. 

LDO token alignment plans

Lido additionally famous that it’s going to advance ‘stronger financial alignment’ between the protocol efficiency and LDO. In accordance with ongoing discussions, a part of the token accrual plan will embody automated token buyback by way of a ‘treasury surplus fund.’ 

This proposal was floated final November, with an annual funds of $10 million for the buyback program. A proper plan for a similar is anticipated in Q2 2026, however it stays to be seen how LDO, the protocol’s native token, will react to the replace. 

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

Ultimate Abstract

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