Price (Market Pair)
The price for each individual market pair is calculated by taking the unconverted price reported directly from the exchange and converting it to USD using CoinMarketCap’s existing reference prices. Let’s take LTC/BTC market as an example:
Let (E) be the price of LTC/BTC reported directly from the exchange.
Let (C) be the last known reference price of BTC from CoinMarketCap in USD.
Let (D) be the derived price reported on CoinMarketCap for the market pair.
For this example, let (E) = 0.01 BTC / 1 LTC and let (C) = 10,000 USD / 1 BTC.
D = E * C
D = (0.01 BTC / 1 LTC) * (10,000 USD / 1 BTC) = 100 USD / 1 LTC
Therefore, the derived price for LTC/BTC on this specific market pair is $100 USD.
Note: Any conversion into other fiat currencies (for example, EUR) are converted from the USD price based on current FX rates provided by openexchangerates.org.
The price of any cryptoasset is a volume weighted average of market pair prices for the cryptoasset. 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 manually 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 automatically 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.