But that's just a natural by-product of crypto currency's evolution. The amounts being raised in ICO's has been steadily decreasing. In summer 2017, you could raise $100M on a half decent project. Today, you're lucky to raise $10M. Investors are also demanding more transparency and deliverables from the projects.
This trend will continue as the market matures. Fundraising will continuously become more difficult once investors get burned a few times. This is all very new, people have no idea what they're doing. Eventually the fools will go broke and the smart money will remain.
The reality is that with so many scams / useless projects being launched every day, investors need to do more and more research to get positive ROI.
Hayek wrote a book arguing that a system of competing privately-issued currencies would ultimately result in currencies with stable value. Of course we haven't yet seen evidence for that either.
I'm not sure what evidence we should even be looking for here, but certainly the share of Bitcoin in the cryptocurrency markets has dropped alongside its value[1]. Anecdotally, most people I've talked to holding, say, ETH, would be holding more BTC otherwise, so it's hard to argue that the competition doesn't depress the price.
As for the Hayek reference, I have some thoughts on that: https://paulbutler.org/archives/stop-dragging-hayek-into-bit...