Fungible Token
Also known as: ERC-20 Token, Interchangeable Token, Crypto Currency Unit
A digital asset that is interchangeable with any other unit of the same type, commonly used for currencies or utilities.
Fungible tokens are blockchain-based assets that are identical and mutually interchangeable. Each unit has the same value and properties, making them suitable for use cases like currencies, governance, staking, or utility payments. ERC-20 on Ethereum is the most common standard for fungible tokens. Examples include USDC, DAI, UNI, and LINK. Unlike NFTs, which are unique, fungible tokens can be easily divided, traded, and aggregated. Their predictability and liquidity are essential for DeFi protocols, exchanges, and payment applications.