Ethereum: Lido Weakened By Declining Yields And Massive Outflows

Lido Finance records a 23% drop in its revenues, according to data published by Lido DAO in its 2025 report. Massive outflows, plummeting yields, loss of market share… The situation is severe. The leading liquid staking protocol on Ethereum thus appears to be currently going through a turbulent zone.

Ethereum staking: a revenue drop revealing a structural crisis

The numbers are clear. The total revenues of the DeFi protocol Lido fell to 40.5 million dollars in 2025, compared to 52.4 million in 2024. This represents a loss of nearly 12 million dollars in one year.

Two factors explain this contraction:

• The fund outflows (net staking outflows) which reduced the volume of ETH deposited on the protocol.
• The compression of yields across the Ethereum network which reduced the fees generated.

As a reference, Lido’s APR went from 13.06% at the beginning of 2025 to only 2.62% in March 2026.

According to the report, the crypto protocol’s market share has also collapsed. Lido controlled 32% of staked Ethereum in 2025. This rate fell to 22.82% in March 2026. The week preceding the publication of this report, 150,000 ETH even left the liquid staking protocol.

The reason? Users are now turning to Ethereum staking via exchanges. Others prefer institutional options offering better guarantees.

How is Lido trying to regain control?

Facing this pressure, Lido has initiated several actions. In August 2025 for example, the crypto protocol reduced its workforce by 15%. Nevertheless, the most anticipated measure remains the LDO token buyback program. It is planned for the second quarter of 2026.

On the product side, Lido is betting on the deployment of stVaults and ValMart via Staking Router V3. The goal: to reach 1 million Ethereum staked in the modular ecosystem by the end of 2026. The protocol is also targeting the institutional segment, notably through the WisdomTree ETP (launched with 36 million dollars under management).

In any case, Ethereum staking remains an $89 billion market. True, the market is becoming more complex. However, the question is no longer if Lido will survive this crisis, but whether it will manage to reinvent itself quickly enough to not lose even more ground to more agile competitors.