How are prices calculated on CoinMarketCap?

How do you calculate a cryptoasset's price on CoinMarketCap? Why is a weighted average used to calculate the price?

A coin’s price is calculated by taking the volume weighted average of all market pair prices reported for the cryptoasset. 

Sources for the prices can be found on the markets section on each cryptocurrency page. For example, Bitcoin’s markets.

The higher percentage of volume contributed from the pair, the more influence it has on the average price.

The rationale for using a weighted average is because in general, markets with higher volume have higher liquidity and are less prone to price fluctuations.

Some prices are excluded from the average, denoted by an asterisk (*) on the markets tab if the price does not seem indicative of a free market price; for example, when an exchange disables withdrawals or deposits, or regulatory conditions make it impossible for anyone else outside of a certain geographical region to buy coins.

Some prices are also excluded when our algorithms detect that the reported price is a significant outlier when compared to other market pairs for the same cryptoasset, denoted by three asterisks (***) on the markets tab.

For more information, please see Section (3) Price (Cryptoasset) of our Methodology page.