Lido's Liquid Staking Lead Erodes Amid Market Shifts

Lido remains the largest player in the liquid staking market, but its dominance has eroded since late 2023. As of mid-2026, Lido manages 9.13 million ETH, with a total value locked between $23.6 billion and $23.8 billion. Despite this, the protocol's market share fell to 21.18% in the first half of 2026 from 32.3% at the end of 2023.

Competitors like Figment gained 344,000 ETH in the last month, while Rocket Pool's rETH supply grew three times faster than Lido's since the start of the year. Users still prefer stETH for its deep liquidity and integration with over 100 protocols, according to the article.

The protocol's treasury held $88.3 million at the end of H1 2026, down from $157.5 million earlier in the year due to the ETH price falling 47% during that period. Lido Labs reduced its workforce by 15% to maintain long-term sustainability following a 23% revenue decline in 2025.