Can circulating supply go down?

Could you please explain in more detail how the circulating supply of a cryptocurrency could potentially decrease? Is it a common occurrence or is it a rare event? What are the main factors that can contribute to a decrease in the circulating supply? How does a decrease in circulating supply typically impact the price and market sentiment of a cryptocurrency? Is there a way to predict when the circulating supply of a particular cryptocurrency might decrease? Thank you for your insights.