Term

Fungible Token

A token where each unit is interchangeable with any other unit of the same type, like currency.

Type:
token
standard
1
concept

Fungible tokens represent identical units; holders are indifferent to which unit they own. This contrasts with NFTs (non-fungible tokens), where each token is unique.

Example 1.1

USDC or DAI on EVM chains are fungible; any 1 unit is the same as another for payments or DeFi operations.

2
usage

Used for payments, governance votes, liquidity provision, and collateral. Standards like ERC-20 enable wallet and exchange interoperability.

Example 2.1

Liquidity pools generally require equal-value deposits of fungible tokens, such as an ERC-20 pair.

All terms and definitions may update as the Cryptionary improves.