Why Is Crypto Crashing in 2026? Trend Research Liquidates $800M in ETH While Aave and XLM Struggle, Making DeepSnitch AI the Potential Best Bet for Recovery

The answer to “Why is crypto crashing?” lies in a massive trend of leverage liquidations triggered by institutional investors rushing to cover their debts. Specifically, Ethereum investment vehicle Trend Research has been forced to aggressively reduce its Ether exposure to pay back loans, creating a cascading effect across the entire ecosystem. 

This selling pressure has pushed Ethereum down nearly 30% in a week, dragging DeFi giants like Aave and payment networks like Stellar (XLM) down with it. But for investors who want to stand a chance for recovery, DeepSnitch AI could be the best shot. Over $1.5 million has been raised at its presale, and the accumulation frenzy is massive.

The institutional liquidation spiral

The primary catalyst explaining why crypto is crashing this week is the distressed selling by Trend Research. The treasury company, which held significant leverage, continued to reduce its Ether exposure as the market turned against it. 

Initially, Trend Research held about 651,170 Ether in the form of Aave Ethereum wrapped Ether (AETHWETH). By February 6th, that amount had reduced by 404,090 ETH to just 247,080. Blockchain data platform Arkham reveals that Trend Research transferred 411,075 ETH, valued at over $800 million at the start of the week, to cryptocurrency exchange Binance.

Which token to buy in the crypto market crash?

DeepSnitch AI ($DSNT): The best bet in a crash?

While many investors are forced to sell, DeepSnitch AI is experiencing a surge of accumulation. The project has successfully raised more than $1,500,000 in Stage 5 of its presale, with the token price holding firm at $0.03830. Those who joined at the opening price are already seeing paper gains exceeding 153%.

And with the launch postponed, presale holders can use the platform’s live tools to move through the crash, while non-holders fly blind. 

With the potential to list on Tier-1 crypto exchanges and a staking program offering dynamic, uncapped APY, DeepSnitch AI is positioned to absorb the liquidity fleeing from leverage-heavy assets.

If you make a $5k buy at the current price, you get about 130,548 DSNT tokens. If DeepSnitch AI hits $1.92, that initial $5k would turn into $250k. This 50x potential makes DeepSnitch AI the best bet for 2026.

Aave market update

Aave is directly implicated in the answer to why crypto is crashing. As the platform where Trend Research held its collateral (Aave Ethereum wrapped Ether), the protocol is at the epicenter of the deleveraging event. Consequently, Aave’s price has declined by 19% in the last seven days as of February 6th, underperforming the global market.

The sentiment for Aave is showing extreme fear, and the token is trading in oversold territory. It is currently suffering from risk-off sentiment. Investors are wary of governance tokens linked to lending protocols during liquidation cascades. The forecast predicts a recovery, but it will be slow.

Stellar price prediction

Stellar ($XLM) presents a classic case of positive news being buried by a market crash. CME has announced the launch of Large and Micro futures contracts for Stellar, a move that provides institutional access and typically boosts legitimacy. 

However, the token has still dropped nearly 10% amid the broader sell-off. The fear generated by the Trend Research liquidation has overpowered the bullish news of CME adoption. Stellar is projected to have a 10% growth by the end of 2026.

The bottom line

Leverage is unwinding, and top coins are crashing. DeepSnitch AI is one of the few assets offering a clean slate and massive upside. It is your recovery plan. A $5,000 purchase at the Stage 5 price of $0.03830 secures roughly 130,548 DSNT tokens. But using a promo code like DSNTVIP50 can increase what you have by 50%. 

Visit the official DeepSnitch AI website, join Telegram, and follow on X for more updates.

FAQs

Why is crypto crashing right now?

Why is crypto crashing? It is due to leverage liquidations, including the forced selling of over 400,000 ETH by Trend Research to repay loans.

How does the Trend Research liquidation affect the market?

This event is a classic example of a crypto market crash explained: a large entity selling $800M+ of ETH floods the supply, driving down prices for ETH and correlated assets like Aave.

What is risk-off sentiment in crypto?

Why is crypto crashing? Risk-off sentiment occurs when investors sell volatile assets to hold cash or stablecoins. In this environment, established coins crash, but highly anticipated presales like DeepSnitch AI often outperform due to their detached price mechanics.

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