The Federation powers are in the center part of the bubble, surrounded by enemies that can attack them on all sides, and they never had the player support that FDev probably assumed one of the two major factions (I don't include the Alliance as a major faction because FDev does nothing with them, no ships, no navy progressions, etc) would get.
Their outnumbered players did a good job for the first year of PP, but like others have noted here, the mess of cycle 52, along with no update to the bare PP mechanics after a year, caused a mass exodus of PP players.
It wasn't just the Federal players who left, numbers went to about 1/3 from where they were before week 52, everyone left.
The positioning of the new Yuri Grom power did nothing to address the player number imbalance, it has only made it worse.
The two federal Powers, the Kumo Crew and Mahon were the 4 most attacked powers week in and week out (because most of the players are in the empire)
Placing the new Yuri Grom power next to these 4 powers shows either malicious intent or complete ignorance of PP player distributions (more likely) by FDev.