You could make the argument that if all of the capital in crypto only had to be spread across 50 coins that that would make each of those coins extremely more valuable. In light of that thought, is the huge variety of Altcoins ultimately a good or bad thing for crypto?
In my opinion, the huge variety of altcoin is good for crypto because people have bigger chance to make money although many of the altcoins are only pump and dumps of the price. With that number, I think people can learn to analyze each coin and find the profitable coin so they can buy and sell the coin. I don't think that the coins were a shitcoin or not, as long as I can use the coin for making a profit then that coin is one the good coin for me.