Of course, the total supply affects the price of each coin/token of a project, especially if the project does not work at all well (in economic terms). When a project is not performing well financially, and you have hundreds of millions of coins/tokens that dilute the value alarmingly, the best you can do is burn them. Very few projects do, but projects that do, not only see an improvement in the value of each unit, but also gain the trust of holders and future investors.