Many of us on the MtF journey can expect some degree of shrinkage while on HRT. It is "normal" that many will have a decreased libido and fewer erections. Fewer erections can lead to less tumescence and a real or perceived diminished size. Non functional testes can be expected to atrophy too. This was once called chemical castration. What you as an individual are wanting is the critical part. Do you want to maintain some function or...?
For some, like me, these are welcome results and further validation of being transgender and a positive feature of transition.
What you will see in print here quite often; "your mileage may vary"
Different strokes for different folks