Lido revenue dropped 23% last year as users withdrew funds and yields declined
Lido's total revenue fell 23% last year to $40.5 million due to user withdrawals and lower staking yields.Summary
Ethereum staking protocol Lido reported that its total revenue declined by 23% year-over-year in 2025, reaching $40.5 million, down from $52.4 million in 2024. This drop was attributed to a structural shift in Ethereum staking, including network-wide Annual Percentage Rate (APR) compression, capital rotation away from Simple Liquid Staking Tokens (LSTs) toward exchange and institutional staking, and increased competition. Lido noted that gross revenues fell 18.2% due to net staking outflows and lower yields. The protocol's market share also shrank as capital moved towards segments heavily incentivized by liquid restaking providers offering token subsidies. In response to the changing landscape, Lido is exploring an LDO token buyback program and is focusing its 2026 strategy on expanding beyond its core staking product to launch new offerings for institutional investors and yield-seekers.
(Source：The Block)