Technically, yes, if you squint; but, practically, no. It was designed with a prioritization of passing the information/data around to avoid any lack of missing anything (so you get a closer experience to the connectedness of Twitter than Mastodon) which means every instance hosts, basically, the entire world. Naturally, there’s only going to be a few entities that can store and afford to store the entirety of the data of the network. There’s no such thing as a small instance, in their protocol.