After the onset of talent migration on Jinxiu Continent, some Daoist lineages suffered losses, while others benefited.
Sects like the Demon Sect's outer paths suffered because few are willing to join them. People seek higher places, water flows to lower ones; large Daoist lineages and major powers inevitably exert greater attraction.
With inherent strength and the golden banner of the Three Pure Ones, ordinary cultivators find such allure hard to resist. Apart from the Buddhist Sect and Daoist Sect's inability to communicate, the fact that the Demon Sect's outer paths belong to a Daoist Sect branch brings massive troubles for them.
They can keep the people, but not their hearts; this is the reality for these small sects.
The Sword Sect discovered that, despite their victory over Lizhi Sea shocking the entire continent, it was only a vain glory, without truly gaining any tangible benefits.