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Back when Lazulight and Obsydia debuted, the world of vtubers was more like a cliff with a sharp edge.
You were either Hololive, with 10k+ viewers, or you were indie, with 100-200 viewers. There was no middle ground for the most part. Except perhaps on twitch, but that's another story.
For Selen to pull 3k was laughable by Holo standards of course, but it was actually nipping the heels of Kiara a little bit, and there were thoughts that perhaps NijiEN could grow and provide another option to Hololive. That's why I liked them, they were a legitimate alternative with their own style. Unfortunately it fell apart when the males debuted. They experienced a huge temporary surge that got Anycolor addicted to chinese money. The end the sisters got their coom, moved on, and when it all settled out the girls realized they had driven away their male fanbase.
If they had taken a different course, perhaps they could have grown steadily like Phase and actually become a legitimate alternative. But it was never to be, Nijisanji was corrupt from the very beginning. Elira had her hooks in the branch from day 1, the seed was poisoned.