TRON price action in July indicates market maturation

Intriguingly, the price-action of TRX during the spate of controversies may prove the cryptocurrency market has reached a significant level of maturity.

A case study by Coinmetrics highlighted that Tron traders responded nearly instantly to three announcements July 22-23 regarding Sun, suggesting a certain level of efficiency in a market that has traditionally been deemed too immature for institutional participation.

This time buyers were spurred into action, and price quickly rebounded up to $0.0254.TRON and the paradigm of "Market efficiency".

The efficient-market hypothesis can be defined as a market's ability to price in available information and stems from the assumption that, in a market with "Strong" efficiency, assets will always be priced at their fair value.

As pointed out by Coinmetrics, closer examination of the three events surrounding TRON's price-action may make the case for "Moderate"-not strong-efficiency in the cryptocurrency market.

Where a strong market would have been able to react instantly to unexpected developments such as the Buffet lunch cancelation, TRX traders did not take meaningful action until 22:25 UTC when they instigated a precipitous sell-off.

What would a strongly efficient market mean for crypto adoption?

A lack of efficiency in the cryptocurrency market may have inhibited the asset class's supposed transition into an institutionally-sponsored, likely multi-trillion-dollar, market.

With efficiency, traders in theory are able to trade with access to accurate and complete information, and in the eyes of regulators and market participants, this is imperative.

Assuming TRX, as the 12th-largest cryptocurrency by market capitalization, represents the current state of efficiency in the crypto market, this would give a compelling explanation as to why institutional trading powerhouses have remained on the sidelines of the market, and the U.S. Securities and Exchange Commission has dismissed a string of supposedly robust Bitcoin ETF applications on the basis they could not "Prevent fraudulent and manipulative acts and practices."