LIDO's revenue dropped 23% amid increasing competitive pressure.

Lido reported 2025 revenue of $40.5 million, down 23% from the $52.4 million recorded in the prior year, amid users withdrawing funds, declining staking yields, and increasingly fierce competition within the Ethereum ecosystem.

Gross revenue also fell 18.2%, reflecting a slowdown in staking activity as the network-wide profit percentage was compressed due to a sharp increase in the number of participants. At the same time, capital flows are shifting away from the traditional liquid staking model toward staking services from exchanges and institutions.

Lido also saw a decline in market share, especially in the liquid staking token segment—which had been the main driver of growth before. Under this pressure, the protocol is considering a buyback program for LDO tokens and expanding into products for institutional investors, expected to be rolled out starting in Q2/2026.