Recently, large financial institutions have shown a significant increase in interest in Ethereum (ETH), with weekly ETH purchases reaching up to four times that of Bitcoin (BTC). This phenomenon has attracted widespread attention in the market and makes us wonder: what exactly are these institutions focusing on?

Investment master Graham Duncan once said, "The further you can tolerate uncertainty, the further you can go." This statement may explain the current mindset of institutional investors. They are betting on the long-term potential of Ethereum, despite facing many uncertainties.

Currently, Ethereum is facing five key challenges that will greatly affect its future development:

1. The Battle Between Deflation and Issuance: The change in the supply of ETH has always been a focal point of market attention. The fluctuation in the burn rate directly affects its deflationary nature.

2. The double-edged sword of the staking mechanism: While staking provides additional收益 for holders, it also brings some potential risks.

3. Regulatory Pressure: As the cryptocurrency market develops, the attitude of regulatory agencies becomes increasingly important. The stance of regulators such as the SEC may have a significant impact on ETH.

4. Ecosystem Competition: Although Ethereum currently dominates the smart contract platform, the rapid development of competitors such as Solana and BNB cannot be ignored.

5. Compliance and Policy Risks: Different countries around the world have varying policy stances on cryptocurrencies, and this uncertainty may lead to market volatility.

Despite facing these challenges, institutional investors remain optimistic about the prospects of Ethereum. They may believe that as the Ethereum network continues to upgrade and improve, these issues will eventually be resolved. At the same time, the application prospects of Ethereum in decentralized finance (DeFi), non-fungible tokens (NFT), and other fields also add more room for imagination.

Of course, investors should also be aware of the high risks in the cryptocurrency market. Market rebounds may bring short-term gains, but long-term investments still require careful evaluation of various risk factors. In the future, whether Ethereum can break through numerous obstacles to achieve true large-scale application is still worthy of our continued attention.