Burning tokens refers to the process of sending tokens to a wallet / ballet, where no one has access, removing them from permanent circulation by reducing their total supply.

That's very true about token burns, the aim is to reduce the supply of the assets in a market, send them to the null address where they are permanently destroyed because the wallet has no key.

The benefit of this is not only about reducing the supply but also has impact on the price of the asset like you have written. BNB is one of the popular projects that burn their tokens and it would continue until half of the total supply is burnt through the auto-burn mechanism.