CNBC's Jim Cramer on Tuesday conceded that Lyft's entrance to the public market "was decidedly a dud," but he thinks the stock's more than 22 percent collapse from its Friday high mark is actually a positive for the bull market.

Lyft's stock price slipped for a second day in a row and remains below its $72 IPO price. The Dow Jones Industrial Average dipped 0.39 points during the session, while the and Nasdaq both ended the session positive.

"I think the decided lack of enthusiasm for the stock deal that is Lyft is one of the best things that's happened to this market in ages," the "Mad Money" host said. "With the help of a grizzled vet I used to trade with, I figured out that the collapse of Lyft is a powerful sign that there's no irrational exuberance here. The enthusiasm is constrained for this market. Investors are behaving rationally. That's not what I expected a week ago."

Cramer said he initially worried that the ride-hailing app's initial offering "would go off without a hitch," enticing other IPOs on the horizon, such as Palantir, Slack, Pinterest, and Uber, to rush and flood the market to make money. He has warned that the volume of highly-anticipated deals could add too much supply on Wall Street.

After Lyft's big first-day pop, the looming IPOs are taking tips about how to move and not lose as much value, Cramer said.

"The companies will agree—they don't want to be too greedy," he said. "It failed with Lyft."

Lyft's trajectory is a positive for the market because the bulls, investors who expect stocks to rise, usually steer clear of exuberance, he added.

"We had a rational lack of exuberance for Lyft, a loss-making company that seemed like it would be red-hot, at least to me. ... Lyft was ice cold,'" Cramer said, referencing the former hip-hop duo Outkast. "And that's great news for the rest of the market because a flood of hot IPOs is the last thing the bulls need."