In less than a year of operating, ETHx has grown its market share to 0.9% - 1% of the LSD market. During late 2023 and early 2024, it experienced significant user growth. Since the initial analysis, DeFi utility has been added, for example with adoption as a restaking asset, which could explain recent growth.

Liquidity remains a pain point, with concentration primarily in Curve pools. The addition of an ETH/ETHx Chainlink price feed is positive, although it is currently not as optimal as Chainlink price feeds on previously onboarded vaults, due to the early stage of the protocol and unknown market resilience. A notable factor is the influence of EigenLayer in ETHx growth trends, which is associated with recent exuberant speculation and may expose ETHx to the risk of sudden and dramatic drawdowns. Such scenarios may expose ETHx to market pressures that test its capacity to process withdrawal demand. Additional data on the asset's behavior in various market conditions and the maturity of its market overall will help create more confidence in its resilience.

Concerns mentioned previously related to low TVL and short market history should be considered less significant, given that ETHx has made positive strides in establishing itself in the market while remaining relatively stable in its yield and peg. A conservative onboarding approach should still be taken due to liquidity and price feed oracle concerns, with less exposure afforded than current LSDs.