Definitely. I ran a MUD on a Sun Sparcstation with 32 megs of RAM back in the mid 90's. (The MUD only used a fraction of that, of course.)
That's similar to what Discworld MUD ran on back then, although that needed frequent MUD reboots to keep the MUD and server somewhat useable (every 45 minutes or so).
Today it is on a 8GB VM and only reboots for bigger game updates. We're looking at moving it onto a PI5.
The added bloat can no longer keep up with hardware getting better :)