Either way, you are not being diluted (which is an actual word with an actual meaning: that your share of ownership of the platform is reduced) by inflation.
Google says:
di·lu·tion
dīˈlo͞oSHn,diˈlo͞oSH(ə)n/
noun
the action of making something weaker in force, content, or value.
"he is resisting any dilution of dogma"
In context it has a more specific meaning:
http://www.investopedia.com/terms/d/dilution.asp"Dilution is a reduction in the ownership percentage of a share of stock caused by the issuance of new shares."
Anyway, we agree that crypto investors don't like it and very few want to invest in it (though apparently some do and are). I don't think anyone ever suggested otherwise. I know I pointed that out as one of the biggest challenges early in this thread (or maybe another one like it).
One thing though -- this has been a constant as has never changed. It was always structurally unfriendly to crypto investors, so this can't explain a
declining valuation. What has changed is that people have observed and are observing that the onboarding/growth strategy has failed and are looking for he developers to offer some improvements to the platform (or perhaps some organic growth coming from an unexpected source). As time goes on without any such improvements (or newly apparent growth), confidence that it will ever happen declines, and with that, the valuation declines too.