While I don’t expect there’s going to be any meaningful impact on Reddit once the dust settles, I do think this will bring a lot of new users to the Fediverse.
Reddit losing a few hundred thousand users is a drop in a bucket given their user base, but it is a significant boost for us.
It actually does matter for the individual instances because the amount of content and interactions grows regardless which server users join because servers federate with each other. This is a fundamentally different dynamic from commercial walled gardens where each platform competes for users with every other.