Does diversification make sense nowadays?

In 2017 when I entered crypto you had so many "amazing" options. At least this is how it looked like. Majority of platform coins have disappeared from top 100: Lisk, Stratis, Ark, Qtum, some are still there but have almost no volume on exchanges left, like Neo. With currencies is a bit different because even tho coins like BCH, LTC dropped out of top 10 they're still challenging for the top spots, the adoption is growing, number of active wallets etc. But then coins like DGB, Nano, XEM, Dash got completely destroyed to pieces and no one even wants to touch them. We can call this phenomenon "survival of the fittest", coins with the strongest believers, most adoption and best use case survive the rest get wiped out.

Now we are in 2022. You may think why is this time different, shitcoins will perform similar to how they performed in all previous cycles. Well let me tell ya, just 2-3 years ago I was able to use Binance without KYC, same for Gate io, I was able to buy any promising shitcoin below top 100 and was confident if I buy them they gonna go up in value, but now I'm becoming skeptical. This time you may think you got a good deal, but what if you just became a sad bagholder, liquidity drops to zero and your shitcoin becomes worthless?

How many coins are going to survive with all these restrictions being implemented? Maybe top 40 at best. Some experts will say stick to top 10 or top 20, but I disagree. As I stated above, majority of platforms in 2-3 years get replaced with never ones. So I don't have much confidence in ADA, SOL, Dot etc. Nowadays I pretty much stick with buying BCH and XMR, everything else I consider gambling.