Venture capital firm Andreessen Horowitz's flagship cryptocurrency fund lost around 40% of its value amid the market slump this year.
Still, firm partner Chris Dixon foresees a mass adoption of blockchain technology and a “very long-term horizon” on digital assets.
While he is not sure when mass-scale adoption will occur, crypto is about the political and governing structure of the internet, he told The Wall Street Journal.
See Also: Can Bitcoin Hard Fork To Proof-Of-Stake Consensus? What It Would Mean For The Apex Crypto
According to PitchBook Data Inc., Andreessen was the second-largest cryptocurrency investor in terms of investment volume after Coinbase Ventures last year, supporting 56 U.S.-based cryptocurrency deals.
The market decline presents the fund with an opportunity to continue supporting crypto entrepreneurs, as it did during earlier bear markets, Dixon says.
“What I look at is not prices. I look at the entrepreneur and developer activity. “That’s the core metric,” he said.
Also Read: Bitcoin Crosses $20K Mark, Ending 3-Week Slump — Will The Crypto Target $25K Next?
While the firm hasn't done anything much this crypto winter, recent developments in a16z's cryptocurrency holdings include the much-anticipated Aptos Layer 1's rocky debut and Adam Neumann's Flowcarbon's delayed token launch.
Even though it has been a rough ride for a16z, the company has placed a few bets, including taking part in a $165 million Series B investment round for the decentralized cryptocurrency exchange Uniswap, which, according to Defi Llama, has $4 billion worth of assets on its platform.
Since the summer, the overall market capitalization for cryptocurrencies has been circling close to $1 trillion.
According to CoinGecko, it has decreased by two-thirds from its peak of $3 trillion in the October 2021 bull run.
Shares of publicly traded companies have fallen, including software provider MicroStrategy (NASDAQ:MSTR) and cryptocurrency exchange Coinbase (NASDAQ:COIN).
Another setback for a16z is it lost $2.9 billion on its investment in COIN.
Electric vehicles maker Tesla (NASDAQ:TSLA) said last week that it has sold off a sizable amount of its Bitcoin (CRYPTO: BTC) holdings to offset losses on its portfolio of digital assets.
Markets also fell just last month when the Federal Reserve announced a further 75 basis point increase in interest rates to combat skyrocketing inflation.
Anatoly Yakovenko, the CEO of Solana (CRYPTO: SOL), another company in a16z's portfolio, has stated that the bear markets may last for another 12 to 18 months.
Read Next: Want To Trade Bitcoin, Ethereum And Dogecoin? You Might Have To Take A Test To Trade In This Country
