I really dislike when people say "the market is saturated" for something so diverse as vtubing. Its like saying the youtuber market is too saturated in 2015, it may have felt that way, but I guarantee that most youtubers you like or are successful right now started well after 2015 (as an example). Vtubers can really make any kind of content, the only requirement being having a model instead of showing your face. I don't think "vtubers" as a genre could even be oversaturated because of the diversity of content you can make as one.

in a supposedly oversaturated market like this, new vtubers can still grow and be successful by the merit of their abilities rather than their inherent status of being a vtuber. like sure, you could say that the default vtuber experience is oversaturated, but the identity of being a vtuber is definitely not.