Per Christopher Bennett's works, the Ferengi Alliance suffered a Depression in the 22nd century or so, and only were getting out of it by the TNG era.
I always envisioned the Ferengi opposite Cardassian space, and the Alliance in general focusing their energies farther away from the Federation. Perhaps the pre-Federation power (the Vegan Tyranny? Or more likely just the Vulcan hegemony of the region) did not gel with the Alliance's financial aspirations, and wealthier clients lay the opposite way, especially since we see hints of a Vulcan-Klingon Cold War after 2016 and perhaps the Orion Syndicate (fallen Orion Empire) has a stranglehold on the local black market. Only opportunistic pirates go that way, and the Orions/Nausicaans/Osaarians don't take too kindly to them (plus, the Delphic Expanse caused them grief). Maybe they even need to cross Breen territory, and the Breen no longer do business with Ferengi merchants.
Then the Depression hits Ferenginar, and the cost of latinum tanks. How does a depression hit in a interstellar culture like this? I'm no expert, but I have reason to believe that it affected much more than the Ferengi Alliance. They, like the Orions of old and maybe now Federation near the Alpha-Beta Corridor, have the markets in check, and when they go down, so do the Cardassians, Talarians, Miradorn, Bajorans, etc. Overspeculation on new cultures, ever expansion into new territories, a Nagus who is ordering these massive D'Koras to show off the Alliance's wealth... I have no doubt the Ferengi are the root cause of the Grand Depression, and that this caused alot of pain and suffering that still plagued the cultures into the 24th century (note: late 22nd/early 23rd century is about when Bajor and Cardassia began to have their problems, "solved" by the rise of the Cardassian Military).
The date closely corresponds to the early implementation of replicator-like technologies in the Federation. Perhaps these new technologies made their way into the Alliance (or just the neighbors), who had not yet based their economy solely on unreplicatable latinum (we first learn of latinum in Enterprise, but maybe it wasn't the primary means of exchange). If gold is accepted in the Alliance as a primary means of exchange, and suddenly everyone can make gold from anything, the economy does not do good.
The region seems very backward and poor, with reused ships because shipbuilding died off, and many cultures reverting to militaristic regimes like in developing countries today. Are the Yridians from this region? They are in Enterprise, but are thought to be extinct until Captain Ransom (2360s) discovers them again. Another financial victim of the Grand Depression.
Even the Alpha-Beta Corridor, long plagued by a booming Orion slave trade (seen in Enterprise), is hit by this Depression. The Orions go from these massive slave traders in Enterprise, to being a legendary culture in TOS (but mostly pirates), to being all but disappeared by the 24th century. If they're the primary traders beyond the Delphic, then the effects of the Depression might've crashed their economy.
Then the Federation, uniting cultures as diverse as Tellar and Andoria and the Rigel Colonies, steps up their game, begins a slow expansion (more an expansion of ideas), and by the mid-23rd, have the Corridor on lock and are warmongering (not their fault!) with multiple neighbors (Klingons, Sheliak, Tholians, Axanar?). The Federation's expansion jibes so well with the Grand Depression, that I think they must be linked, ancillarily at least. Either the unknown cause (replication tech) or solution (offering a refuge for depressed cultures) to the problem. Or both, most likely.