Most cryptocurrencies other than BTC/ETH are used mostly for trading and not real world use. Steem stands as an exception to this, because it actually has a use other than trading.
I think over the long term, practical real world uses are what will matter for a cryptocurrency to survive and grow. Just look at Ethereum, it was built from the ground up for real world, practical applications, and in just 2-3 years, it has rocketed to the #2 position ahead of a lot of things that came before it.
Yes I agree that in the long run only cryptos with actually real world applications will survive. It just seems odd that these ICO's are generating millions with zero promise of anything at the end, whereas Steem is a proven platform that is used to power such a large site as this but seems stuck on the markets.
Considering as you say it has a real world use and can also be traded it should put it way out in front of most of the competition but thats not what we are seeing.
Thanks for the comment.
Well, even ethereum languished at sub-$1 rates for months before blowing up. So maybe it takes time for cryptocurrencies with real applications.