Ethereum's EVM compatibility significantly impacts the investment value of other public blockchains. The Ethereum Virtual Machine (EVM) is a widely adopted standard, enabling seamless smart contract deployment and interoperability. Chains like Binance Smart Chain, Polygon, and Avalanche leverage EVM compatibility to attract developers and projects from Ethereum’s ecosystem, enhancing their utility and adoption. This compatibility reduces development costs and time, boosting their competitiveness and appeal to investors. However, non-EVM chains like Solana or Cardano, while offering unique features (e.g., higher throughput or scalability), may face challenges in capturing Ethereum’s developer mindshare, potentially limiting their ecosystem growth. Investors often weigh EVM compatibility as a signal of network effect and future-proofing, though innovation and differentiation in non-EVM chains can still drive value if they solve specific pain points Ethereum cannot.