With many ICO's not selling so much of their tokens or not reaching the hard cap, many of these token's price always plummeted after entering the exchange. 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? More valuable meaning pricier thus each holder of token will get more from what they bought? Or it is actually the opposite? What is your opinion about?
Please don't hate me for my thinking. If you know that I'm wrong, please correct me.
There are two fundamental factors at play here which ultimately determine the price of an asset. The first factor is, as you noticed, scarcity, but just being scarce is nowhere near enough to be valuable. The other factor without which scarcity has no importance is utility. In this case, utility means usefulness for achieving certain ends. So if something is scarce but lacks utility it won't have any value because it doesn't provide utility. But utility without scarcity is also pretty much useless for having a price tag. We cannot live without air, so it has absolute utility and is of vital necessity to us. But it still has no price tag because it is not scarce and freely available to anyone at no cost.