What Is Fungible?

When it comes to cryptocurrency, fungible refers to a crypto asset’s interchangeability; meaning, fungible assets are identical and of equal value. 

For example, ETH is a fungible token, as it can be exchanged on a one-to-one basis (i.e., 1 ETH with another ETH). On the other hand, non-fungible tokens (NFTs) are each unique and have varying value; hence, they are non-fungible tokens.

What Makes Something Fungible?

There are certain requirements for a token to be considered fungible. It must be uniform, equally interchangeable with another, and maintain a standard value.

Key Takeaway

Fungible refers to the interchangeability of an identical coin or token.

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