Most of the valuation now is because of speculation. I would be ok with it if there were say 100s of projects. But with 1600+ projects I don't think it is sustainable. Projects shouldn't do an ICO until it is required. For getting visibility and adoption they always have the option of airdrops. Only when they have proven a few things or have a working product they should ICO.

I am not a bitcoin maximalist. But I think it will maintain its number one position for quite some time.