All of the SteemIt developers quit and all of the community developers went to Hive, so yea it's kind of falling apart.

As for the HIVE token price, Justin and a lot of the people who support him still got millions of tokens via exchanges which they are dumping. That will likely go on for a while but once those tokens are out of their hands I expect we'll get a more accurate and stable pricing. In the meantime for people who want to accumulate HIVE tokens it should give a great buying opportunity. There are also a lot of people powering down their STEEM with the goal of trading it for HIVE, though this will happen more slowly over the power down period. This is likely why Justin froze a number of large accounts like freedom and blocktrades so they cannot sell their STEEM and he can keep the price up while dropping that of HIVE.