Yes you are right in my point of view. Due to high competition, start-ups will have to face some hard time.
But it will be overcome if the ICO make a good feedback. Once they make a good vibe, its scale will be high to face the challenges.
This is one of the main advantage of ERC20 Ethereum smart contracts because Ethereum blockchain backbone is more scalable than Bitcoin, NEO or any platforms.
new altcoins this year were based on Ethereum Smart Contracts due to it's scalability, portability, transparency and other leading advantages as well.
It will add more points on every ICO and crypto startups this year.