Indeed, take for an example a certain p2e game last 2021 they did not manage the circulating supply of their nft coins and their token they are in the peak of their career after 3 year but then they did not expect that this 2021 they will be on the mainstream media and that incident made the project fall but it is still alive but the players decrease so bad and still they have a lot of supply.
You are right the most important is to create demand in the tokens. And sometimes it is very difficult to do this. It is simple it issue a lot of tokens but how to create demand in them. To do this it is necessary to create something useful for people that people will be glad to buy tokens and use them.
True it is important to create demand for the token but if the token supply is gazillions then the effort will be wasted due to over saturated market. It is important to think and study thoroughly the maximum supply of the token and not just blindly allocate it. Investors will grow tired if the price of the token is tanking, and every time there is an attempt to push adoption to uptrend the price, the massive number of token in circulation will often hinder this growth.