One of the main reasons is to reduce the total supply of the cryptocurrency in question, which can help to boost its value in the long run.
By reducing the supply of a given cryptocurrency, the demand for it may increase, which can result in higher prices.
This is particularly useful for newer cryptocurrencies that are trying to establish themselves in the market and build a reputation.
Another reason why cryptocurrencies may burn coins is to combat inflation.
Inflation is a common issue in traditional fiat currencies, where central banks can print more money and thus devalue the currency.
With cryptocurrencies, the supply is fixed, which means that inflation is not an issue in the same way.
However, some cryptocurrencies may still experience inflation due to new coins being minted as rewards for miners.
By burning some of these newly minted coins, the overall supply can be kept under control and inflation can be prevented.