What is expected in the development of THETA?

Theta Network is making significant progress with these key updates:

1. TPulse Subchain Launch (Q1 2026) – A new blockchain layer to track AI activities, ensuring transparency and real-time usefulness.
2. Team Heretics AI Agent (Q1 2026) – An AI-powered tool to boost fan engagement on esports platforms.
3. EdgeCloud NVIDIA H200 Integration (December 2025) – Upgraded hardware for faster AI training and scalable decentralized computing power.

In-Depth Look

1. TPulse Subchain Launch (Q1 2026)

What is it?
TPulse is a dedicated subchain within Theta Network designed to verify AI-driven actions. This helps keep data accurate and trustworthy for uses like AI training and personalized content. Announced in November 2025, it aims to build confidence in decentralized AI systems.

Why it matters
This development is positive for THETA because it opens up new opportunities in the growing AI and machine learning space, where transparent data is crucial. However, there’s a risk if AI developers prefer centralized platforms instead.

2. Team Heretics AI Agent (Q1 2026)

What is it?
Theta Network teamed up with Team Heretics, a major Spanish esports organization, to launch an AI agent that interacts with fans in real time on platforms like Discord. Powered by Theta’s EdgeCloud, this tool will tailor content and provide insights for games like VALORANT and League of Legends (announced November 2025).

Why it matters
This partnership is somewhat positive, as it shows Theta’s technology being used in esports. The real impact depends on how many fans and users adopt the tool. Success here could lead to more deals in gaming and sports.

3. EdgeCloud NVIDIA H200 Integration (December 2025)

What is it?
In December 2025, Theta upgraded its EdgeCloud platform with NVIDIA H200 GPUs, which have 141 GB of VRAM and deliver AI processing speeds 2.5 times faster. This upgrade aims to compete with big centralized cloud providers by offering developers a more affordable option (source).

Why it matters
This is a positive move if demand for GPU power increases. However, it could face challenges if big players like AWS or Azure dominate the market. Operators running Theta nodes might earn more TFUEL rewards thanks to this upgrade.

Conclusion

Theta Network’s roadmap highlights a strong focus on AI infrastructure (with TPulse and EdgeCloud) and strategic partnerships (like Team Heretics) to strengthen its position in decentralized computing. Still, legal issues (lawsuit) and market conditions pose risks. The big question for 2026 is whether Theta’s growing AI capabilities can overcome regulatory challenges.

What updates are there in the THETA code base?

Theta Network's software is actively maintained, with recent updates improving node performance and preparing the blockchain for future growth.

1. Block Sync Improvements (Oct 8, 2025) – Better communication between nodes and smarter memory use to keep the network stable.
2. Security & Efficiency Fixes (Feb 2, 2025) – Important patches to stop spam attacks and reduce errors.
3. Subchain Scalability Prep (Oct 21, 2022) – Set the stage for supporting thousands of smaller blockchains within the network.

Deep Dive

1. Block Sync Improvements (Oct 8, 2025)

What happened: The Theta Network updated its software (version 4.1.1) to make syncing blocks faster and more reliable. This was done by limiting heavy data requests and disconnecting slow or unresponsive nodes after 30 seconds.

Key updates:

• Limited the number of simultaneous block requests to reduce overload
• Added timeouts to drop connections that don’t respond quickly
• Ignored blocks from outdated versions of the blockchain

Why it matters: These changes help keep the network running smoothly, which is important for decentralized video streaming and AI applications that rely on Theta. More stable nodes mean fewer interruptions and could encourage businesses to run their own nodes. (Source)

2. Security & Efficiency Fixes (Feb 2, 2025)

What happened: Version 4.1.0 fixed memory leaks and improved security to protect against attacks that could overload the network.

Key fixes:

• Stopped memory from leaking during node handshakes
• Added limits on how often nodes can request peer information
• Allowed password settings through environment variables for better security

Why it matters: These are routine but important updates that help prevent denial-of-service attacks as more nodes join the network. A 37% drop in node crashes (Theta tweet) means better uptime for those staking THETA tokens.

3. Subchain Scalability Prep (Oct 21, 2022)

What happened: Version 4.0.0 introduced features to support many smaller blockchains (subchains) running alongside the main Theta blockchain.

Key features:

• Increased smart contract size limit to 500KB (five times bigger)
• Added a system to resolve addresses across different chains
• Created rules for electing validators on the main chain

Why it matters: This update is important for the future because it allows more complex decentralized apps and AI models to run on Theta’s subchains. However, adoption is still early, with only three subchains active as of December 2025 (EdgeCloud, NFT, TPulse).

Conclusion

Theta Network’s ongoing updates show a clear focus on making the network more reliable and ready for enterprise use. While recent improvements are gradual, they build a strong foundation for scalable AI and media applications on subchains. Given the current low turnover rate of 3.98% and a 60% price drop this year, it will be interesting to see if better node performance encourages more stakers to participate in 2026.

Why did the price of THETA fall?

Theta Network (THETA) dropped 0.66% in the last 24 hours, extending its losses to 7.67% over the past week and 25.34% over the past month. Here’s what’s driving these changes:

1. Legal Issues – Former executives sued CEO Mitch Liu on December 17, accusing him of fraud and market manipulation, which has created ongoing uncertainty.
2. Technical Weakness – The price fell below important support levels, with indicators showing the coin is oversold.
3. Low Trading Volume – A 14% drop in trading activity made price swings more severe.

Deep Dive

1. Legal Risks (Negative Impact)

Overview: On December 17, two whistleblower lawsuits accused CEO Mitch Liu of manipulating THETA prices through fake NFT bids, overstating partnerships with companies like Google and NASA, and insider trading (Decrypt). The lawsuits claim Liu controlled 43% of TDROP tokens and sold them after prices peaked.

What this means: These legal challenges hurt confidence in Theta’s leadership. Although the allegations are not proven, they coincide with THETA’s 88% drop over the past year. Markets tend to punish cryptocurrencies when their executives face serious misconduct allegations, similar to what happened during the FTX collapse.

What to watch: Court decisions expected by January 2026 and whether major partners like Sony and Deutsche Telekom continue supporting Theta’s network.

2. Technical Weakness (Negative Impact)

Overview: In October 2025, THETA’s price fell below its 2020 low of $0.118. Currently, it trades at $0.273, which is 60% below its 200-day moving average of $0.669. The Relative Strength Index (RSI) is at 27.98, indicating the coin is heavily oversold, but no clear price rebound has occurred yet.

What this means: Long-term investors have faced significant losses, which puts pressure on prices as some may sell during any short-term rallies. Technical analysis points to $0.266 as the next key support level, matching the 2020 low.

3. Market Sentiment (Mixed Impact)

Overview: The Crypto Fear & Greed Index stands at 28, signaling “Fear,” which generally benefits Bitcoin over alternative coins like THETA. Trading volume for THETA dropped 14% to $10.6 million, meaning lower liquidity and more price volatility.

What this means: THETA has underperformed Bitcoin (+0.47% in 24 hours) and Ethereum (-0.25%) as investors move toward safer assets. However, the recent EdgeCloud upgrade, which boosts AI processing speed by 2.5 times, could help stabilize prices if more users adopt the platform.

Conclusion

THETA’s recent decline is driven by ongoing legal concerns, weak technical signals, and a cautious market environment. While its AI infrastructure upgrades (EdgeCloud and NVIDIA H200 integration) show promise for the future, traders are waiting for more clarity on the lawsuits and the overall direction of the crypto market. Key point to watch: Will THETA hold the $0.266 support level, or will further selling push it to new lows?

What could affect the price of THETA?

Theta Network is facing legal challenges and making technical upgrades amid a shaky market environment.

1. Legal Risks – Fraud lawsuits are shaking investor confidence and liquidity.
2. EdgeCloud AI Upgrade – A 2.5x faster AI processing boost could increase demand.
3. Market Sentiment – Oversold signals conflict with widespread fear in the crypto sector.

In-Depth Look

1. Fraud Allegations (Negative Impact)

What happened: On December 17, 2025, two former executives sued Theta Network’s CEO, Mitch Liu, accusing him of manipulating the market. The claims include fake bids on NFTs and overstated partnerships with big names like Google and Katy Perry. Theta denies these allegations, but the lawsuit could lead to regulatory scrutiny and cause investors to pull out.

Why it matters: Legal uncertainty often scares investors, leading to less buying and more selling. THETA has already dropped 60.7% over the past 90 days, showing weakened trust. Similar cases in the past, like after the FTX lawsuits, show prices can stay low until the situation clears up.

2. EdgeCloud & AI Upgrade (Positive Impact)

What happened: On December 16, Theta Network upgraded its EdgeCloud platform by adding NVIDIA H200 GPUs. This makes AI training 2.5 times faster and increases memory to 141 GB. Universities like Syracuse and companies like Sony Europe are starting to use this technology, showing growing interest from businesses.

Why it matters: Faster and more powerful infrastructure can attract AI and machine learning projects that need decentralized computing power. This could increase the use of Theta’s tokens, TFUEL and THETA. The recent TDROP v2.0 whitepaper also highlights paying AI agents with tokens (Theta Blog), which could boost token value, though it may take time for this to happen.

3. Market and Technical Signals (Mixed Impact)

What’s going on: THETA is currently trading at $0.274, down 88.4% over the past year. Technical indicators show it’s oversold (RSI at 32.5) and the price is below important averages (30-day average: $0.328, 200-day average: $0.643). However, the overall crypto market is fearful (Fear & Greed Index at 28/100), and Bitcoin’s dominance at 59.1% is limiting gains for other coins.

Why it matters: Being oversold suggests THETA might bounce back soon, but broader market problems like low trading volume (down 56.6% year-over-year) could slow recovery. If the price rises above $0.289, it might gain momentum. But if it falls below $0.266, it could trigger panic selling.

Conclusion

Theta Network’s future price depends on how the legal issues play out versus the success of its AI technology upgrades. While the EdgeCloud improvements offer long-term potential, short-term risks from lawsuits and weak market conditions are significant. Will big institutional users help restore confidence among everyday investors? Keep an eye on legal updates and EdgeCloud usage data through early 2026.

What are people saying about THETA?

Theta Network’s latest news is a mix of legal challenges and technology improvements. Here’s the quick rundown:

1. Former employees sue the CEO for fraud – accusing him of exaggerating partnerships and insider trading.
2. EdgeCloud upgrade released – now offers AI training that’s 2.5 times faster using NVIDIA H200 GPUs.
3. Key price support level at $0.65 – traders are watching this level closely to see if it holds.

Deep Dive

1. @Theta_Network: EdgeCloud AI Upgrade – Positive Outlook

"Theta EdgeCloud now delivers 141 GB VRAM, enabling 2.5× faster AI workloads"
– @Theta_Network (272K followers · 12.1M impressions · 2025-11-18 23:56 UTC)
View original post
What this means: This upgrade makes Theta Network stronger in the decentralized AI space, which could attract more business clients. Using powerful GPUs like the NVIDIA H200 may increase demand for THETA staking and TFUEL transactions, potentially boosting the network’s activity and value.

2. @WhisprNews: Legal Issues Grow – Negative Outlook

"Former execs allege CEO manipulated Katy Perry NFT bids and Google Cloud partnership claims"
– @WhisprNews (3.67K followers · 2.1M impressions · 2025-12-20 10:56 UTC)
View original post
What this means: The lawsuit raises concerns about how the company is managed. If the allegations are true, it could lead to investors selling their THETA tokens and invite regulatory investigations. Despite this, THETA’s price stayed steady at $0.317 right after the lawsuit was announced.

3. Community Post: Price Support Level – Mixed Signals

"THETA retests $0.7784 support – previous bounces led to 571% and 2,717% rallies"
– Technical analysis referencing past price patterns from 2021 and 2023
View original post
What this means: Traders see a chance for big gains if the price holds above support, but the recent 60.75% drop over 90 days and the ongoing lawsuit add uncertainty. If the price falls below $0.65, it would weaken the positive outlook.

Conclusion

The overall view on THETA is mixed. On one hand, the EdgeCloud upgrade and adoption by over 20 institutions show real progress and usefulness. On the other hand, the fraud lawsuit creates risks that could limit price growth until resolved. Keep an eye on the $0.65 support level and updates from the December 28 court hearing—these will likely influence THETA’s next major move.

What is the latest news about THETA?

Theta Network is currently facing legal challenges while also making important technical improvements. Here’s a quick summary of the latest updates:

1. Fraud Allegations Raised (December 24, 2025) – Former company leaders have sued CEO Mitch Liu, accusing him of manipulating the NFT market and misleading investors through false partnerships.
2. EdgeCloud Upgrade Released (December 16, 2025) – Theta Network enhanced its system with NVIDIA H200 GPUs, boosting AI processing speeds by 2.5 times despite ongoing legal issues.
3. TDROP Whitepaper Version 2.0 (December 17, 2025) – The TDROP token’s purpose has shifted to facilitate payments between AI agents, supporting machine-to-machine commerce.

In-Depth Look

1. Fraud Allegations Raised (December 24, 2025)

Summary: Two former executives from Theta Labs have filed lawsuits against CEO Mitch Liu. They claim he arranged fake bids on NFTs, artificially raised the price of the THETA token through misleading partnerships—including one involving Katy Perry’s Las Vegas residency NFTs—and took retaliatory actions against employees who spoke out. Since its peak in 2021, THETA’s price has dropped by 95%, trading at $0.273 as of December 25.

What this means: These allegations could lead to increased regulatory scrutiny and further damage investor trust, especially given similarities to past cryptocurrency scandals like FTX. Theta Labs denies any wrongdoing, describing the lawsuits as attempts to extract settlements. (Yahoo Finance)

2. EdgeCloud Upgrade Released (December 16, 2025)

Summary: Theta Network launched an upgrade to its EdgeCloud infrastructure, incorporating NVIDIA H200 GPUs. This upgrade provides 141 GB of video memory and increases AI training speeds by 2.5 times. Major partners, including Sony Europe, continue to support Theta’s decentralized video streaming and edge computing services.

What this means: This technical upgrade strengthens Theta’s position in AI and media infrastructure, which could help counterbalance negative news from the legal challenges. Following the announcement, the token price stayed above $0.317, indicating cautious optimism among investors. (CoinMarketCap)

3. TDROP Whitepaper Version 2.0 (December 17, 2025)

Summary: Theta has repurposed 4 billion TDROP tokens by moving them into a staking pool. The token’s role is shifting from rewarding NFT holders to enabling payments between AI agents. This change aims to build a decentralized AI economy where machines can autonomously negotiate and pay for services.

What this means: While this shift could drive long-term growth for the Theta ecosystem, it may confuse current users who are familiar with TDROP’s previous use in NFTs. The success of this new approach depends on how well developers adopt it and integrate it with Theta’s upgraded EdgeCloud platform. (CoinMarketCap)

Conclusion

Theta Network is at a pivotal moment. Serious fraud allegations threaten its reputation, but ongoing infrastructure upgrades and a new focus on AI-driven token use aim to secure its future. The key question is whether regulatory concerns will overshadow these technical advances or if Theta’s decentralized AI applications can renew investor confidence.