The same thing happened during Dot Bomb, the Great Recession, and even 2018-20.
Paul G's early blogposts on "ramen profitability" and entrepreneurship hold credence in these kinds of times, as these rightsizing moments do open opportunities to build challengers.
Behemoths like FB, PANW, SNOW, and SFDC were founded during the aftermath of the dot bomb and behemoths like Coinbase, Uber, DoorDash, and Stripe during the Great Recession.
Now that the barrier to building products and companies is much lower than it has been for years, we will see the next generations of rocket ships.