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It definitely is having a renaissance of sorts, it's starting to gain some traction in the drag racing scene, seeing more and more nitro rigs, and people saying they want to build them. The Kyosho USA-1 nitro monster truck is set to be released...and then there's this ad by HPI that says it...

Nitro is not dead, it's just a symptom across the entire RC world right now - lack of supply chain coupled with huge demand.