Lido’s Revenue Plummets 23%: Will an LDO Buyback Save the Day?

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Lido Revenue Drops 23%: Can an LDO Buyback Reverse the Slide?

Lido’s revenue decreased by 23% in 2025, reaching $40.5 million, with $37.4 million coming from staking fees. The organization governing Lido, known as the DAO, is now exploring options like buying back LDO tokens and has seen its treasury balance fall to $157.5 million.

Lido’s income fell by 23% recently. The company is considering buying back its own LDO tokens to try and boost its value, after seeing lower earnings in 2025 due to changes in staking and increased competition within the Ethereum network.

Revenue Declines As Staking Outflows And Yields Drop

Lido’s revenue totaled $40.5 million in 2025, a decrease of 23% from the $52.4 million earned the year before.

Overall income also went down, decreasing by 18.2% during that time. This decrease happened because fewer assets were being staked and the rewards for staking were lower.

Lido Reports $40.5 Million in Revenue Last Year, a 23% Year-over-Year Decline

Lido reported $40.5 million in revenue over the past year, a 23% drop from the $52.4 million earned the year before. Overall earnings decreased by 18.2%…

— 0xzx (@0xzxcom)

Net staking fee revenue stood at $37.4 million, reflecting lower activity on the platform.

People removed their funds from the system, and the rewards for holding and verifying transactions on the Ethereum network decreased. As a result, the protocol earned less money overall.

Lido announced updates to how Ethereum staking works. Fewer rewards from the network and changes in what users want are impacting how many people participate.

The protocol also noted that its market share has decreased as competition grows.

DAO Evaluates LDO Buyback Plan Using Staking Rewards

The Lido DAO is reviewing a proposal to introduce an LDO buyback program.

The proposal will likely be reviewed in early 2026. If approved, it will use rewards earned from the system to buy LDO tokens.

The purchased tokens may be deployed into liquidity pools, including LDO and wstETH pairs.

This method aims to balance the number of tokens in circulation with the ease of buying and selling them. The community governing the project hasn’t approved the final plan yet.

The company announced that the repurchase of shares will be funded by rewards earned through the system itself, and won’t require any additional investment.

This ensures the system’s performance is linked to the platform it runs on. We are continuously evaluating and improving it, so expect more changes in the future.

Related Reading: $ASTER Buyback Goes Live as Aster Deploys Strategic Reserve

Costs Decline While Treasury And Strategy Adjust

Lido reported total expenses of $45.5 million, down 13% compared to the previous year.

Following cost-cutting efforts, including a 15% reduction in staff last August, the company aimed to secure its future operations.

The protocol’s treasury stood at about $157.5 million at the end of the period.

Looking at the numbers, we saw a roughly $14 million decrease from where we were in 2024. These changes in Treasury figures are a result of both how much we’re spending on operations and what’s happening in the broader market.

Lido 2025 Revenue Falls 23% to $40.5M as DAO Weighs LDO Buyback Plan

Lido’s revenue for 2025 was $40.5 million, a 23% decrease from the previous year. This drop was primarily due to fewer users staking their assets and a decrease in staking rewards (APR). The organization governing Lido is currently exploring potential solutions.

— Wu Blockchain (@WuBlockchain)

Lido also outlined plans to expand its offerings beyond basic staking services.

The goal is to appeal to larger organizations and offer staking options with varying reward rates. This change reflects current trends in the overall staking landscape.

The report highlighted increasing interest from institutions in digital assets. For example, WisdomTree, a firm managing $140 billion in assets, recently launched a product based on Ethereum in Europe.

This product allows you to earn rewards by staking through Lido. Lido has noted that competition is growing from other exchanges and larger financial institutions offering similar services.

The report also observed a move away from basic liquid staking options. These changes are likely to keep happening as the Ethereum staking landscape develops.

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2026-03-25 19:16