Topic: How CoinMarketCap calculates the average price of cryptos? (Read 80 times)
Price is calculated by taking the volume weighted average of all prices reported at each market. Sources for the prices can be found on the markets section on each cryptocurrency page. For example, https://coinmarketcap.com/currencies/bitcoin/#markets
I know they make an average of all the exchanges out there.
Let's take Ripple for exemple. It currently lists @ $3.05 on CoinMarketCap right now. However the XRP/USD pairs trade at roughly $2.6-2/7 on Binance, Bittrex, Kraken, HitBTC etc. Literally no exchange trade XRP/USD anywhere close from $3.05.
So I guess my question is how can they list XRP à $3.05 when all the other exchanges trade it at $2.7? Does that mean that CoinMarketCap also add all the XRP/BTC, XRP/ETH pairs into the equation, convert them in $ and make an average out of it?
Thanks!
They take the average price of all exchange. Let's take Ripple for exemple. It currently lists @ $3.05 on CoinMarketCap right now. However the XRP/USD pairs trade at roughly $2.6-2/7 on Binance, Bittrex, Kraken, HitBTC etc. Literally no exchange trade XRP/USD anywhere close from $3.05.
So I guess my question is how can they list XRP à $3.05 when all the other exchanges trade it at $2.7? Does that mean that CoinMarketCap also add all the XRP/BTC, XRP/ETH pairs into the equation, convert them in $ and make an average out of it?
Thanks!
Yes it is exactly that coinmarketcap does an average of all the pairings that are there. Right now it currently says $3.10 because on Korean exchanges it is trading for $3.90 whereas $2.70 on Western spots. If you spilt the difference you would end up with $3.30 but the average is lower because more volume is ultimately done at the $2.70 price. I wish this clairfies things.
I know they make an average of all the exchanges out there.
Let's take Ripple for exemple. It currently lists @ $3.05 on CoinMarketCap right now. However the XRP/USD pairs trade at roughly $2.6-2/7 on Binance, Bittrex, Kraken, HitBTC etc. Literally no exchange trade XRP/USD anywhere close from $3.05.
So I guess my question is how can they list XRP à $3.05 when all the other exchanges trade it at $2.7? Does that mean that CoinMarketCap also add all the XRP/BTC, XRP/ETH pairs into the equation, convert them in $ and make an average out of it?
Thanks!
Let's take Ripple for exemple. It currently lists @ $3.05 on CoinMarketCap right now. However the XRP/USD pairs trade at roughly $2.6-2/7 on Binance, Bittrex, Kraken, HitBTC etc. Literally no exchange trade XRP/USD anywhere close from $3.05.
So I guess my question is how can they list XRP à $3.05 when all the other exchanges trade it at $2.7? Does that mean that CoinMarketCap also add all the XRP/BTC, XRP/ETH pairs into the equation, convert them in $ and make an average out of it?
Thanks!
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