That alone is not enough tbh. What I mean is, scarcity or a tightening circulating supply will not mean much if demand isn't growing along with it.
To properly value or estimate a asset's price, you gotta weigh both supply and demand and adoption rate and real market demand.
It explains why Bitcoin succeeds while most altcoins failed even they tried to shill their projects as game changers, Bitcoin killers. Bitcoin has a good deflationary supply but it has many other things which make its very high value and its value has increased very well with time too.
Only a cap for total supply and deflation with time and market cycles won't be enough to create value of a cryptocurrency. How many cryptocurrency projects are decentralized in developments. How many blockchains are decentralized in hashrates if they are PoW?
Among many blockchains, Bitcoin is the most decentralized, strongest and most secure while in developments, it has best developers in blockchain industry too.
Everyone keep saying bitcoin will flip gold someday. But that's only gonna happen if demand shootsup and become many time bigger than available supply. If demand stalls or just stop growing, bitcoin will still struggle to flip gold, even if supply keeps getting squeezed.