I think it won't hurt anyone to have another option, in my opinion Steemit is pretty good but it's difficult to get new users from outside of crypto world to use it, with Hilo that problem doesn't exist, but will it be engaging enough? If it will be only about cryptocurrencies then it may become one big advertisement/ billboard for altcoins and icons.
Over 2,000 real accounts in the last few days, including some of the heavy hitters like Andreas, Stark, and more. If you don't try it, its on you -- lots of people there now and actively posting. Its one of the top ten Mastodon instances out there.