Yes. The limit comes from compressibility effect when the speed of the propeller blades approaches speed of sound in which case drag increases dramatically and efficiency falls off rapidly. I haven't seen any experimental data for thrust (Ct) and power (Cp) coefficients for propellers operating at supersonic speeds. That would be really interesting.
Of course, mechanical strength may also be a consideration.
Ok it sounds reasonable, but we may also think in terms of prop efficiency, which becomes zero when the forward speed is zero (static condition).
Efficiency = (thrust * velocity) / input power
Also propellers use to have their highest efficiency at a moderate rpm.