What is Lido (LDO)? Everything you need to know about the DAO cryptocurrency

Originally launched to make Ethereum staking more accessible, Lido enables users to stake their ETH and receive stETH tokens in return, which represent their staked assets plus any accrued rewards. The platform’s governance token, LDO, is used for protocol-level decisions and governance votes.

Lido continues to play a central role in Ethereum’s staking landscape, offering a liquid alternative to traditional staking while maintaining an evolving position amid changing market conditions.

What is Lido and how does it work?

Lido (LDO) remains one of the leading crypto staking solutions as of November 2025, supporting staking across several proof-of-stake (PoS) blockchains. Its platform allows users to stake digital assets and receive liquid staking tokens in return, enabling participation in decentralised finance (DeFi) activities while still earning staking rewards.

Currently, Lido supports staking for Ethereum, Polygon, Polkadot, and Kusama. Support for Solana has been gradually phased out due to ecosystem and governance changes. By late 2025, most liquidity and activity are focused on Ethereum and Polygon.

How staking works on lido

Lido lets users stake assets such as ETH to help secure proof-of-stake (PoS) networks. In return, they receive stETH – a liquid token that mirrors staked ETH and accrues rewards automatically.

Unlike traditional locked staking, stETH can be used across decentralised finance (DeFi) platforms. Since Ethereum’s 'Shanghai' upgrade in 2023, users can also withdraw staked ETH, improving access and flexibility.'

Lido governance and operations

Lido is managed by the Lido Decentralised Autonomous Organisation (DAO), which oversees smart contract upgrades, protocol fees, validator selection and treasury management. LDO token holders vote on proposals and influence governance decisions.

The platform issues stETH on a 1:1 basis for staked ETH, remains non-custodial, and supports Web3 wallets with no minimum staking amount.

Lido V3 adds customisable vaults to improve flexibility and risk management, alongside the existing Core Pool staking option.

Supported blockchains

Lido supports Ethereum, Polygon, Polkadot and Kusama, with Solana support phased out. Cross-chain functionality is expanding through integrations such as Chainlink’s CCIP, connecting wrapped staked ETH across multiple networks.

What is LDO coin?

LDO is the governance token of the Lido DAO. The LDO token enables holders to vote on key parameters, including platform fees, node operator selection, and operational expenses. The voting weight of each holder is determined by the amount of LDO staked in the voting contract, consistent with the Lido whitepaper.

Token distribution

As of November 2025, there have been no major changes to the original LDO token distribution:

• DAO Treasury – 36.3%
• Investors – 22.2%
• Developers – 20%
• Founders and future employees – 15%
• Validators and withdrawal key signers – 6.5%

This structure continues to define the framework for the project’s current token allocation.

Market capitalisation and circulating supply

As of November 2025, LDO’s market capitalisation is estimated at $672 million, and the current circulating supply stands at about 895.8m LDO, representing nearly 90% of the maximum supply (CoinMarketCap, 5 November 2025).

LDO’s market cap has declined over time; it ranks the 82nd largest cryptocurrency by market capitalisation, compared with 33rd in January 2023.

LDO coin price history and news

The earliest data on CoinMarketCap shows Lido (LDO) trading at about $1.80 in early January 2021. The token traded range-bound between $0.50 and $3.28 from January to April 2021, before rising above $5 in May amid a broader crypto rally. As ETH reached an all-time high above $4,800 in November 2021, LDO posted its own peak of $11.00.

2022

The 2022 crypto bear market saw LDO drop to an all-time low of $0.406 on 18 June 2022. The collapse of Terra that year affected Lido, as Terra was one of the supported blockchains. Lido subsequently announced it would discontinue Terra operations. The main driver for LDO in 2022 was Ethereum’s transition to proof-of-stake, known as ‘the Merge’. In July 2022, LDO gained about 375% – its biggest monthly gain – after Ethereum developers confirmed the September 2022 Merge date. However, LDO later declined as investor sentiment weakened following several high-profile bankruptcies in the crypto industry. The token closed 2022 at $0.95, down around 75% for the year.

2023

LDO started 2023 strongly, surging more than 50% in the first week of the year. Tokens of rival staking platforms such as StakeWise and Rocket Pool also gained. Analysts attributed this to anticipation of Ethereum’s ‘Shanghai’ upgrade, which enabled ETH withdrawals. As of January 2023, over 30% of all ETH staked was through Lido, making it the largest ETH staking platform by share.

Past performance is not a reliable indicator of future results.

2024 and 2025

Over the next two years, LDO remained volatile, reaching intraday highs near $4.04 in January 2024 and trading mostly between $1–$3 for much of 2024 and early 2025, before declining below $1 in mid-2025.

A lower low of $0.3914 was recorded on 10 October 2025, with the most recent closing price at $0.7532 on 5 November 2025. Past performance is not a reliable indicator of future results.

Risks of staking on Lido

According to Lido, staking ETH through its protocol involves several risks:

• Smart contract risk: Funds are controlled by open-source smart contracts that may contain vulnerabilities or bugs.
• DAO governance risk: Decisions are made collectively by LDO token holders, which can introduce governance delays or manipulation risks.
• Operator and custody risk: Failures or breaches involving node operators can result in slashing or loss of funds, despite decentralised key management.
• Technical risk: Staking depends on both the Ethereum network and the Lido protocol operating securely and without disruption.
• Slashing risk: Validators can be penalised for rule violations, resulting in partial or total loss of staked ETH.
• stETH liquidity risk: The stETH token may trade below ETH’s price during high withdrawal demand or market stress.
• Market risk: Returns depend on Ethereum’s network health, market adoption and Lido’s share of total staked ETH.

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