Andreessen Horowitz’s crypto fund has plummeted a whopping 40% – has the firm had enough? – Bitcoin (BTC/USD), Solana (SOL/USD)

venture capital company Andreessen Horowitz‘s flagship cryptocurrency fund lost around 40% of its value amid the market downturn this year.

Still a steady partner Chris Dixon envisions mass adoption of blockchain technology and a “very long-term horizon” for digital assets.

While he’s not sure when mass adoption will happen, crypto is about the internet’s political and governing structure, he told The Wall Street Journal.

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According to PitchBook Data Inc., Andreessen was the second largest cryptocurrency investor in terms of investment volume after Coinbase Ventures last year, backing 56 cryptocurrency businesses in the US.

The market decline presents the fund with an opportunity to continue supporting crypto entrepreneurs like it has during previous bear markets, Dixon says.

“What I see are not the prices. I look at entrepreneurship and developer activity. “That’s the core metric,” he said.

Also Read: Bitcoin Crosses $20,000, Ending 3-Week Plunge – Will the Crypto Target $25,000 Next?

While the company hasn’t done much this crypto winter, recent developments in a16z’s cryptocurrency holdings include the much-anticipated rocky debut of Aptos Layer 1 and the delayed token launch of Adam Neumann’s Flowcarbon.

While it’s been a tough time for a16z, the company has made some bets, including participating in a $165 million Series B investment round for decentralized cryptocurrency exchange Uniswap, which Defi Llama says has 4 million worth of assets Billions of dollars has on its platform.

As of the summer, the total cryptocurrency market cap is close to $1 trillion.

It is down two-thirds from its peak of $3 trillion during the October 2021 bull run, according to CoinGecko.

Stocks of publicly traded companies have fallen, including software providers MicroStrategy MSTR and cryptocurrency exchange coin base COIN.

Another setback for a16z is that it lost $2.9 billion from its investment in COIN.

Electric Vehicle Manufacturers Tesla TSLA said last week that it has sold a significant amount of it Bitcoin BTC/USD Holdings to recoup losses on its portfolio of digital assets.

Markets also fell just last month when the Federal Reserve announced another 75 basis point rate hike to combat skyrocketing inflation.

Anatoly Yakovenko, CEO of Solana SOL/USDanother company in a16z’s portfolio has stated that the bear market could continue for another 12 to 18 months.

Continue reading: Want to trade Bitcoin, Ethereum and Dogecoin? You may need to take a test to trade in this country

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