No, it does not work like that. There is Bitcoin and there are altcoins. Each new "competitive" altcoin is diluting the existing altcoins, because most of them do the same things. ETH does not exist in its own bubble, when they made Solana and other competitors they diluted its relevance. As they continue to spin new altcoins, no tokenomics will save them.  

There is very little innovation in altcoins. They have stopped being about tech and are now only a money game, because of that most things are at least partially fake. How many altcoins call themselves the most scalable and decentralized blockchain, even while they require expensive hardware for you to run a node?