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Daily Brief

5 Crypto VC Bets on Rising Trends

From fledgling bets to bona fide unicorn hype machines, these crypto startups have narrative momentum driving them.
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Jan 29, 20263 min read
5 Crypto VC Bets on Rising Trends
Published on Jan 29, 2026
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NEED TO KNOW
TheDAO Is Back
  1. 🔐 TheDAO Is Back as a $220M Ethereum Security Fund. Unclaimed funds from the 2016 DAO hack are being repurposed into a $220M security endowment for the Ethereum ecosystem.
  2. 🧑🏻‍🦲 Coinbase-Backed Fairshake PAC Has $193M Heading into Midterms. The pro-crypto super PAC's backers include Coinbase, Ripple, and a16z.
  3. 🌾 Senate Bill Granting CFTC Authority Over Crypto Spot Markets Advances. The Senate Agriculture Committee passed its crypto clarity bill along party lines.
📸
Daily Market Snapshot: A tech stock shellacking took a serious bite out of crypto prices with BTC falling below $84K and ETH dropping to $2,750.
Prices as of 5pm ET 24hr 7d
Crypto $2.88T ↘ 5.3% ↘ 5.0%
BTC $84,448 ↘ 5.4% ↘ 5.3%
ETH $2,818 ↘ 6.6% ↘ 4.3%
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PLAY OF THE WEEK
5 VC Bets Pointing to Crypto’s Next Big Themes
Bankless Analyst: Jack Inabinet

Some of crypto’s biggest winners aren’t born onchain. They start in private markets, quietly accumulating capital, traction, and regulatory leverage long before tokens or tickers appear.

While most investors can’t access these rounds directly, paying attention to who is raising and what trends they represent offers a powerful edge. Venture funding often surfaces the builders and businesses that will define crypto’s next cycle, and this most recent raise class appears especially promising, with several candidates already resembling prime IPO plays.

Here are five venture-stage crypto companies with narrative momentum at their backs that are worth tracking in 2026. 👇

💸 YO Protocol

Website | Twitter
Last Raise: $10M
Valuation: Unknown
Round: Series A

Deployed on Base, Yield Optimizer (YO) Protocol is an onchain vault offering diversified yield indexes that generate income by deploying capital across multiple protocols and blockchains.

YO aggregates yields and handles portfolio rebalancing, allowing users to earn yield with ease on their ETH, BTC, USD, and EUR deposits, and users receive liquid yoTOKENS after depositing, which enjoy widespread integrations across preeminent Base DeFi applications, including Pendle, Euler, and Contango.

The Protocol announced it had raised $10M in a Series A fundraising round – which was led by Foundation Capital with participation from Coinbase Ventures, Scribble Ventures, and Launchpad Capital – in December of last year.

What’s the Trend?

Onchain yield funds, or vaults, are quickly becoming one of the hottest trends in crypto markets. They can enable anyone to access high-yielding crypto opportunities, without needing to manage position risk or rebalance their portfolio.

While these vault models are not without their risks (Stream Finance imploded in November and dragged numerous other tokenized yield funds into its insolvency wake), YO seeks to mitigate risks for its depositors by adjusting allocations based on risk using Exponential.fi ratings.


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Not financial or tax advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This newsletter is not tax advice. Talk to your accountant. Do your own research.

Disclosure. From time-to-time I may add links in this newsletter to products I use. I may receive commission if you make a purchase through one of these links. Additionally, the Bankless writers hold crypto assets. See our investment disclosures here.