Waves are a great project, but they still haven't shown anything that will make them a true rival to Ethereum. Only a few projects are based on Waves, and very few people use the Waves blockchain.
So I don't think Waves will be the Ethereum killer, I think there's a greater chance that EOS or BNB will surpass Ethereum first.
Red market certainly has an impact on Waves, I'm sure that someday Waves can enter top 10, the thing to do is to immediately add more coins and tokens even though it is based on ethereum or EOS.