Definition
Interchangeable. A fungible asset is identical and can be exchanged one-for-one with another unit of the same asset. One Bitcoin equals another Bitcoin. Contrast with non-fungible (unique) assets like NFTs.
Why It Matters
Understanding fungibility helps you grasp the difference between regular cryptocurrencies and NFTs, and why some assets are treated as commodities while others represent unique ownership.
Example
Your 1 ETH is identical to someone else's 1 ETH — fully fungible. But a specific NFT artwork is unique and non-fungible.
Related Terms
NFT
Token
ERC-20
ERC-721