Lido revenue drop 23% for 2025 as DAO dey review LDO buyback for Q2 2026
Lido report say dem revenue drop 23% for 2025 to $40.5M (from $52.4M for 2024). Staking fee revenue comot down to $37.4M because execution-layer and consensus-layer rewards weak as Ethereum scale and issuance change.
Other key metrics sef fall for Lido: TVL drop from 9.63M ETH to 8.81M ETH (-8.5%), and Lido staked-ETH market share waka from 28%+ in 2024 to just over 24% by Dec 2025. DAO talk say dem lose share because capital dey rotate to exchange staking, institutional low-risk strategies, and liquid restaking platforms wey dey subsidize yields with their own tokens.
To solve governance-token valuation wahala, Lido DAO dey review automated LDO buyback mechanism (under NEST tokenomics) wey dem target for Q2 2026. Plan na to use protocol-generated yields to buy LDO for open market, then put the tokens into LDO/wstETH liquidity position wey Lido go control. Buyback go only run after real treasury surplus don show, and dem don build manual governance swap module before technical validation.
For traders, immediate takeaway na softer Lido revenue momentum, balanced by potential catalyst in 2Q26: the LDO buyback review and possible implementation. Make una monitor LDO liquidity on LDO/wstETH pair and ETH staking flow trends for confirmation.
Neutral
Revenue and fee weakness plus TVL/share decline dey usually na short-term bearish sign for LDO fundamentals, mean say less staking inflow and lower protocol-generated income. But di DAO plan to do LDO buyback for Q2 2026 fit help reduce some valuation pressure by creating buy demand wey protocol yields go fund, and any progress toward that mechanism fit make traders feel better.
Net effect: direction no be one-side. Until details on treasury surplus, execution, and timing clear, market likely go trade LDO based on tension between softer 2025 performance and the 2Q26 buyback optionality.