With the excess tokens that are not sold during the ICO are being burned, it is really possible that a fewer circulating supply of tokens will make it rarer thus it is more valuable?
Low circulating supply could make the price go up temporarily because the demand may be greater. But in the long run what matters most is the total supply. How are the additional tokens released? Are they mined, or staked? At what rate. All that has to be taken into account. The closer the circulating supply is to the total supply, the scarcity is larger and the tokens are more valuable.