Lido Finance recorded a 23% drop in revenues, according to data published by Lido DAO in its 2025 report. Massive outflows, plummeting returns, loss of market share… The findings are severe. The first liquid staking protocol on Ethereum currently seems to be going through a zone of turbulence.
In brief
- Lido lost 23% revenue in 2025 due to massive ETH outflows and collapsing yields.
- Lido is trying to respond with a buyback of LDO tokens.
Ethereum staking: a drop in revenue that reveals a structural crisis
The numbers are clear. DeFi Lido protocol's total revenue fell to $40.5 million in 2025 from $52.4 million in 2024. This represents a loss of nearly $12 million in one year.
Two factors explain this contraction:
- Net staking outflows which reduced the volume of ETH deposited on the protocol.
- The compression of yields across the entire Ethereum network which has reduced the fees generated.
For reference, Lido’s APR fell from 13.06% at the start of 2025 to only 2.62% in March 2026.
According to the reportthe market share of the crypto protocol has also collapsed. Lido controlled 32% of the Ethereum staked in 2025. This rate fell to 22.82% in March 2026. The week preceding the publication of this report, 150,000 ETH even left the liquid staking protocol.
The reason? Users are now turning to Ethereum staking via exchanges. Others prefer institutional options with better guarantees.
How does Lido try to regain control?
Faced with this pressure, Lido has initiated several actions. In August 2025, for example, the crypto protocol reduced its workforce by 15%. However, the most awaited measure remains the LDO token buyback program. It is planned for the second quarter of 2026.
On the product side, Lido is banking on the deployment of stVaults and ValMart via the Staking Router V3. The objective: reach 1 million Ethereum staked in the modular ecosystem by the end of 2026. The protocol also targets the institutional segment, notably via the WisdomTree ETP (launched with $36 million under management).
Regardless, Ethereum staking remains an $89 billion market. Certainly, the market is becoming more complex. However, the question is no longer whether Lido will survive this crisis, but whether it will manage to reinvent itself quickly enough to avoid losing even more ground to more agile competitors.
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