Lido Sees Revenue Decline, Investigates LDO Token Buyback
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Lido, the leading liquid staking protocol on the Ethereum network, concluded 2025 with a reported revenue of $40.5 million, reflecting a significant 23% decrease from the previous year’s earnings of $52.4 million. This information was revealed in an execution report released by the Lido Foundation.
As part of its strategy to enhance the value of its governance token, the DAO is exploring a new automated buyback mechanism for LDO tokens. Deployment of this initiative is anticipated for the second quarter of 2026 and is aimed at linking the token’s value more closely with the financial outcomes of the protocol.
Revenue pressures were evident across the staking landscape, with Lido mentioning an 18% drop in gross staking rewards. The total rewards fell from roughly $1.03 billion to $846.7 million. Concurrently, Lido lost a portion of its dominance in the staked ETH market; its share decreased from over 28% in 2024 to just above 24% by December 2025.
In terms of total value locked (TVL), the assets decreased from 9.63 million ETH to 8.81 million ETH, translating into an 8.5% decline. The report indicated that this shift in market share is attributed to capital moving towards exchange staking alternatives, institutional low-risk staking opportunities, and liquid restaking platforms that utilized their own tokens to bolster returns.
Despite these challenges, the staking environment on Ethereum has shown signs of improvement, particularly with heightened network activity recorded in 2026.
Recent market trends reflected a decline in LDO’s trading value, with data from CoinGecko indicating the token hovered at around $0.27 as of March 27, down 7.3% within a week. The price range was relatively narrow, fluctuating between $0.275 and $0.290, remaining close to its recent low of $0.2714 seen on March 8, 2026.
In parallel, Lido is actively working on a buyback strategy aligned with its Network Economic Support Tokenomics (NEST). This plan, once implemented, will enable users to acquire LDO tokens from the market utilizing the yields generated by the protocol and subsequently position these tokens in an LDO/wstETH liquidity setup managed by the platform.
Additionally, Lido has reported completing the development of a manual module for governance-controlled token swaps, with technical validation set for release in Q2. The firm emphasized that any buyback actions will only take place when there is a genuine surplus in the treasury.
Last year marked the launch of Lido Earn, a platform designed for high-yield staking, which has already accumulated over 77,000 ETH in TVL. This development followed WisdomTree’s introduction of the first stETH liquid staking ETP in Europe, along with partnerships with firms like BitGo, Hex Trust, Komainu, and Crypto Finance AG, enhancing custody and staking options for clients.
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