Bitcoin is definitely thriving in terms of price, i.e. as a speculative financial instrument, and who knows, maybe it will become some sort of alternative reserve currency, but it's hard to deny that we departed from the original idea of it being a currency that people would actually use as money (aka a peer-to-peer electronic cash system).
I've come across this meme sometime ago and I think there's a lot of truth to it:



This was especially evident when everyone was rooting for the spot ETFs approval, which did pump the price up but could turn out harmful to Bitcoin long term.