Though to be fair the concept of a powerful city lost to time is something that resonates a lot, and there's multiple similar myth like the isle of Ys, the lost continent of Lemuria, or in the arabic folklore 'Iram of the pillar', often called 'Atlantis of the sand'.
[0] There was an episode on it in the excellent podcast 'In Our Time' by the BBC (https://www.bbc.co.uk/programmes/m001c6t3)
And the way Atlantis supposedly ended also fits what happens on volcanic islands.
Nobody at the time could fabricate it out of his own imagination. The description is too accurate.