Historically, and I don’t mean only crypto but with other monies too : it’s not really about the price but more about liquidity. If you have a big and constant flow of newly minted tokens hitting the markets at some point there isn’t much bid interest to sustain the market and it has to reprice lower. This doesn’t mean that less supply means a higher price, but just marginally better market conditions.
There was a time when big supply and big APRs were the trend (especially in the 2018 era of masternode coins). What would often happen would be that the bids to buy more of the coin would rapidly disappear, leading exchanges to pair the coin against litecoin (litoshi markets) leading to even less liquidity.
Stable, predictable rates of inflation are also necessary for defi to work efficiently.
Osmosis did reduce their inflation rate, but they did it at the same time they reduced the liquidity provision incentives.