GitHub and GitLab use Rails. Many UK government websites do.
Like anything else, Rails is good for some things & terrible at others. Rails tries to minimize developer time, at the cost of computing time (Ruby is not a fast language), and focuses on CRUD-type applications. Whether or not that's a good match depends on what you're trying to do.
Somehow Rails-like frameworks didn't make it big on Node.js, which was released way later than Ruby.
I saw this as a sign that the time of these fully fledged frameworks was over and devs were craving modularity.
But, yes, I saw a bunch of recent projects done with Rails. Forem is built with it, for example.
I knew a few people at university, who were pretty hyped about it. That was in 2008, I think. They used it at some companies where they jobbed and found it too limiting.
I was building customized stuff with bare PHP in those days and found it quite flexible. Later, the Rails hype came to PHP, but I already left for Node.js and never looked back.