For the average user it may have it may not be their preferred option but it’s certainly a competitor. Lemmy is pretty much a drop in replacement to the point that several third party Reddit apps at least for Android have simply modified their api calls to use lemmy rather than Reddit.

There’s not quite as much content but it already appears to be enough to be sustainable which is the most important part. And you can bet that whenever Reddit next messes up there will be further migration.