Lido Finance Achieves Profitability for the First Time in Its Fourth Year

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Lido Finance, a decentralized protocol introducing the concept of liquid staking, has reported its first-ever profit in its fourth year of operation. The net income for 2024 reached $99 million, while expenses amounted to $94 million. This outcome marks Lido’s first positive financial period in its history, with a net income of $5 million, according to data provided by the crypto consulting firm Steakhouse Financial.

Increase in ETH Price Boosts Profitability

Adrian Vasiljevic, founder of Steakhouse Financial, stated, “Lido’s profit largely parallels the rise in Ethereum prices.” Vasiljevic noted that since the beginning of 2024, the ETH price has increased by 67%, climbing from $2,350 to over $4,000. The surge in ETH prices significantly supported Lido’s revenues.

Moreover, interest from users and institutional participants in liquid staking services has contributed to this growth. In January, the total amount of locked ETH increased by 5%, reaching 9.81 million ETH. Lido’s stETH product continues to maintain its popularity among users while preserving the liquidity of staked ETH.

Focus Shifted from Polygon Network to Ethereum

Lido Finance decided to end its services on the Polygon POS network and fully focus on the Ethereum ecosystem. This decision was made following discussions on the Lido DAO forum and a governance vote involving LDO token holders. The team explained that scalability issues on the Polygon network influenced this decision.

Additionally, Lido has launched a new community staking module, allowing users to operate as node operators on the Ethereum mainnet without prior approval. This innovation strengthens Lido’s goals for decentralization.

Lido’s native token, LDO, has seen an 82% increase over the past 30 days, trading at $2.11. However, the token experienced a 7.7% decline in the last 24 hours, reaching a market capitalization of $1.9 billion.

Lido Finance’s transition to profitability after four years is supported by increased demand for Ethereum staking and rising ETH prices. The company continues to diversify its growth strategies while maintaining its leadership position in the liquid staking market.

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