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The point is not an overnight collapse. It’s gradual rot.
Reddit (Twitter, Facebook…) all exist because they created a monopoly around their service. Reddit through their incompetence created a competitor. They will have to work so much harder to make their ends meet now that there are alternatives. Worse yet, the viability of Lemmy will spawn other efforts.
Look at Twitter. Between Mastodon and Bluesky they are eroding. They have to beg advertisers to stick around. At the same time there is a bakers dozen of other efforts underway all creating a new landscape. Twitter was the king and now they are rapidly becoming one in a pool of microblogging services. They will wither.
Reddit just popped it’s monopoly and will also fail.