TL;DR:
- The platform’s total revenue fell to $40.5 million, representing a 23% drop compared to the $52.4 million recorded in the 2024 period.
- The organization attributes these results to APR compression on the Ethereum network and a capital rotation toward exchanges and institutional staking services.
- The protocol plans to launch an LDO token buyback program during the second quarter of 2025 to strengthen liquidity in the strategic LDO/wstETH pair.
This Tuesday, it was reported that the Ethereum staking protocol, Lido, saw its annual revenue fall by more than 20%. The decline is in response to a net outflow of funds by users and a generalized decrease in the network’s staking yields.
Gross revenue suffered an 18.2% cut due to the “structural compression” of Ethereum’s APR. Despite this challenging environment, the protocol seeks to stabilize its native token, LDO, through a buyback program scheduled for the second quarter of this year, using generated rewards to provide liquidity in the LDO/wstETH pair.
This shift in the landscape reflects a migration of capital from simple Liquid Staking Derivatives (LSDs) toward institutional and low-risk options. The organization noted that competition intensified from restaking providers offering aggressive subsidies.
Institutional Strategy and Token Buyback
To soften the impact, Lido began a strategic transition that includes expanding into products designed specifically for institutional investors. A recent example is the collaboration with WisdomTree, a firm with $140 billion in assets, which launched an Ethereum ETP in Europe using Lido’s infrastructure.
On the other hand, long-term sustainability remains a priority following the 15% staff cut implemented in August 2025. This measure aims to optimize operational efficiency while the protocol, founded in 2020, attempts to regain its dominance in a market increasingly fragmented by centralized exchanges.
In summary, Lido faces a period of financial adjustment marked by narrowing margins and loss of market share. However, its focus on the institutional sector and token buybacks suggests an effort to recover value for its ecosystem and adapt to the new staking structure in 2025.
