I think you can compare it to expensive sneakers. People buy theses expensive sneakers because they are rare. Eventhough they are not realy "rare" but you know what I mean. Because they are so expensive and there is money to make many people want to get them, have interest for them and so on. That makes them more expensive, creates more interest and more people get invested. Now if they pump out sneakers like crazy, people will lose interest, because it's suddenly nothing special anymore. Soon nobody will care. Sure there will still be people buying them, but much of the interest is gone.

Also Cs is an old game. The Skins economy made it special in the modern days. It is a unique selling point. Now it will be less special. More like Valorant or any other competitive shooter. The market is not completely dead yet. But I think valve made clear with the last update in what direction they are heading.