Lido Posts 23% Revenue Drop in 2025, Plans LDO Buyback

Lido, the largest liquid staking protocol on Ethereum, closed 2025 with total revenue of $40.5 million, down 23% from $52.4 million the year before, according to an execution report published by the Lido Foundation. The DAO is now reviewing an automated LDO token buyback mechanism, with the deployment targeted for Q2 2026, as part of a broader effort to…

Key takeaways

Quick scan — what you need to know:

• Lido, the largest liquid staking protocol on Ethereum, closed 2025 with total revenue of $40.5 million, down 23% from $52.4 million the year before, according to an execution report published by the…
• The DAO is now reviewing an automated LDO token buyback mechanism, with the deployment targeted for Q2 2026, as part of a broader effort to align the governance token’s value with the…
• A Difficult Year for Staking Revenue In the report, Lido noted that its main source of income, staking fee revenue, fell from $48.5 million to $37.4 million.
• In addition, there was a drop in execution layer rewards as a result of the ongoing network scaling on Ethereum, as well as a decrease in consensus layer rewards that was built into the issuance…

Background

What led here, in plain terms:

• Meanwhile, gross staking rewards across the entire protocol fell 18% in dollar terms, from approximately $1.03 billion to $846.7 million.
• There was also a decline in Lido’s share of the staked ETH market, with its holdings going from more than 28% of all staked ETH in 2024 to just over 24% in December 2025.
• In ETH terms, total value locked fell from 9.63 million ETH to 8.81 million ETH, a drop of 8.5%.
• The report attributes the share loss to capital rotating toward exchange staking, institutional low-risk staking, and liquid restaking platforms that used their own protocol tokens to subsidize…

Why it matters

Why readers and decision-makers should care:

• It came after WisdomTree launched the first stETH liquid staking ETP in Europe.
• The product also includes integrations with BitGo, Hex Trust, Komainu, and Crypto Finance AG that provide clients with more custody and staking options.
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