Lido’s annual revenue falls 23% YoY…hit by lower staking yields and fund outflows

Ethereum (ETH) staking protocol Lido has reported a decline in annual revenue.

According to The Block on the 24th (local time), Lido said its total revenue last year came to $40.5 million, down 23% from $52.4 million a year earlier.

Lido cited staking fund outflows and a broad decline in yields as the main drivers of the revenue drop. It said revenue-generating capacity shrank as user funds exited alongside network-wide APR compression.

Lido said, “The structure of the Ethereum staking market is changing,” adding, “As capital shifts toward exchange staking and institution-led low-risk products and competition intensifies, our legacy stronghold has narrowed.”

The decline in the market share of the plain-vanilla liquid staking token (LST) segment—where Lido had been strong—also weighed on results. Some funds are seen as having moved to higher-yielding areas such as restaking protocols.

Market share also slipped. With competition intensifying and staking demand diversifying, Lido’s previous dominance appears to be weakening.

As a response, Lido is moving to expand new businesses while defending token value. It is currently reviewing a treasury token buyback program that would use protocol revenue to purchase LDO in the market, and the plan could launch in the second quarter of this year.

It also adjusted its organizational structure. In August last year, Lido cut 15% of its workforce as part of a push to improve cost efficiency.

Going forward, it plans to focus on expanding new products aimed at institutional investors and high-yield strategies. Asset manager WisdomTree has previously launched an Ethereum ETP in Europe that reflects Lido-based staking returns.