Blockchain and cryptocurrency has introduced a variety of digital assets that have revolutionized how we perceive ownership and value. Fungible tokens and non-fungible tokens (NFTs) stand out as two fundamental yet distinct categories. Fungible tokens, such as cryptocurrencies, are interchangeable and serve as the backbone of digital finance. In contrast, NFTs are unique digital assets that have transformed industries like art, gaming, and collectibles by offering unparalleled ownership opportunities. This article explores the differences, use cases, and examples of these tokens, shedding light on their significance and how tools like Trust Wallet enhance their utility.
What are Fungible Tokens?
Fungible tokens are digital assets that are interchangeable and possess equal value, making them an important component of the cryptocurrency ecosystem. These tokens follow a standardized set of rules, allowing them to be easily exchanged and used within various applications. The most prominent example of fungible tokens is cryptocurrencies, such as Bitcoin and Ethereum, where each unit is identical and can be substituted for another without any loss of value.
The Standard for Fungible Tokens
A key standard for fungible tokens on the Ethereum blockchain is ERC20. Introduced in 2015, this standard provides a uniform set of rules for creating and managing fungible tokens. ERC20 tokens facilitate seamless transactions and interactions across various platforms and wallets, ensuring interoperability within the Ethereum ecosystem.
What are Non-Fungible Tokens (NFTs)?
Non-Fungible Tokens (NFTs) are a unique category of digital assets that represent ownership of specific items or content on the blockchain. Unlike fungible tokens, which are interchangeable and identical, NFTs are distinct and cannot be exchanged on a one-to-one basis. This uniqueness makes NFTs particularly valuable for representing ownership of digital art, collectibles, and other one-of-a-kind items.
The Standard for NFTs
The most widely recognized standard for creating NFTs on the Ethereum blockchain is ERC721. Introduced in 2018, this standard provides a framework for defining unique tokens, ensuring that each token has distinct attributes and ownership records. ERC721 is pivotal in establishing the functionality of NFTs, allowing for the creation, transfer, and management of these unique digital assets.
Key Differences Between Fungible and Non-Fungible Tokens
Fungible Tokens
Fungible tokens are interchangeable, meaning each token is identical and can be exchanged for another of the same type without any loss of value. For instance, one unit of a fungible token is equal in value to another unit of the same token.
Use Cases of Fungible Tokens
Fungible tokens have a range of applications, including:
- Cryptocurrencies: Examples include Bitcoin (BTC) and Ethereum (ETH), which facilitate peer-to-peer transactions and serve as stores of value.
- Utility Tokens: Provide access to services or governance features in decentralized applications (dApps).
- Stablecoins: Tokens like Tether (USDT) and USD Coin (USDC) are pegged to stable assets, offering a less volatile medium of exchange.
Non-Fungible Tokens (NFTs)
Non-Fungible Tokens (NFTs) represent unique assets that cannot be exchanged on a one-to-one basis. Each NFT has distinct attributes that differentiate it from others, making it one-of-a-kind.
Use Cases of Non-Fungible Tokens (NFTs)
NFT applications include:
- Digital Art: Enables artists to create and sell unique works while retaining ownership and earning royalties from secondary sales.
- Digital Collectibles: Virtual trading cards and limited-edition items that can be traded and appreciated in value over time.
- Gaming: Represent in-game items, characters, and skins, allowing players to own, trade, and use assets across games.
Similarities between NFT and Non NFTs
While Fungible Tokens and Non-fungible Tokens (NFTs) have distinct differences, they also share some similarities which includes:
Blockchain-Based:
Both fungible tokens and NFTs are created and managed on blockchain networks, ensuring transparency, security, and immutability for all transactions.
Digital Assets:
These tokens represent digital assets. Fungible tokens typically represent digital currencies or utilities, while NFTs represent unique digital items like art, collectibles, or virtual real estate.
Smart Contracts:
The creation and management of both fungible tokens and NFTs are governed by smart contracts. These self-executing contracts have terms written directly into code, enabling automated and trustless transactions.
Ownership Proof:
Both types of tokens provide proof of ownership. For fungible tokens, this means owning a certain amount of the token. For NFTs, it means owning a unique digital item.
Interoperability:
Both fungible tokens and NFTs can be used across different platforms and applications within the blockchain ecosystem, thanks to standardized protocols like ERC-20 for fungible tokens and ERC-721 or ERC-1155 for NFTs.
Examples of Fungible Tokens
Bitcoin (BTC)
Bitcoin, launched in 2009 by the anonymous Satoshi Nakamoto, is the first and most well-known cryptocurrency. Each Bitcoin is interchangeable, serving as a digital currency and store of value.
Ethereum (ETH)
Ethereum is a versatile blockchain platform that enables smart contracts and decentralized applications (dApps). Its native token, Ether (ETH), facilitates transactions and computational services. Like Bitcoin, Ether is fungible.
Most Popular NFTs in 2025
1. CryptoPunks – The OG NFT Collection
CryptoPunks are a 10,000 total supply Ethereum Blockchain NFTs created by Larva Labs (2017). They are widely regarded as one of the earliest and most valuable NFT collections. These 24×24 pixel-art characters were originally given away for free but have since sold for millions. Some rare CryptoPunks, such as Alien, Zombie, and Ape Punks, have fetched record-breaking prices.
Notable sales:
- CryptoPunk #5822 – Sold for $23.7 million
- CryptoPunk #4156 – Sold for $10.26 million
2. Bored Ape Yacht Club (BAYC) – The Celebrity Favorite
BAYC is an Ethereum blockchain project created by Yuga Labs in 2021, consists of 10,000 cartoon-style apes, each with unique attributes. Holding a Bored Ape grants exclusive membership perks, including access to events, airdrops, and metaverse experiences. Celebrity owners include: Eminem, Snoop Dogg, Stephen Curry
Notable sales:
- BAYC #8817 – Sold for $3.4 million
- BAYC #2087 – Sold for $2.3 million
3. Azuki – Anime-Inspired NFT Art
Azuki is an Ethereum Blockchain project created by Chiru Labs in 2022, it has a total supply of 10,000.
Azuki is a Japanese anime-inspired NFT collection with hand-drawn characters and a strong artistic aesthetic. Owners gain access to “The Garden,” a virtual space for networking and exclusive drops.
Notable sales:
Azuki #9605 – Sold for $1.4 million
4. CloneX – 3D Avatars for the Metaverse
CloneX was created by RTFKT & Takashi Murakami in 2021, it an Ethereum Blockchain project with a total of 20,000.
CloneX is a futuristic, metaverse-ready avatar project designed for virtual worlds. The involvement of Nike (which acquired RTFKT) has added major brand power to the collection.
5. Doodles – Playful and Colorful Collectibles
Doodle was created by Evan Keast, Scott Martin, Jordan Castro in 2021witj a total supply of 10,000
Doodles is an Ethereum blockchain project that features bright, pastel-colored characters that stand out for their simplicity and charm. The project includes interactive features, such as Doodlebank, a treasury for community-driven decisions.
6. The Sandbox NFTs – Virtual Land Ownership
Created by Animoca Brands, the Sandbox is an Ethereum blockchain-based metaverse where users can buy, sell, and build experiences on virtual land NFTs. Big brands, including Adidas and Atari, have purchased land in the game.
7. Decentraland NFTs – Digital Real Estate
Created by: Decentraland Foundation
Blockchain: Ethereum
Similar to The Sandbox, Decentraland offers virtual land plots and in-game assets as NFTs. Owners can create businesses, host events, and interact with others in a decentralized metaverse.
8. Moonbirds – The Utility-Driven NFT Collection
Created by Proof Collective in 2022, Moonbirds are pixel-art owls that provide access to an exclusive community of NFT investors and Web3 enthusiasts. Holding a Moonbird unlocks staking rewards and VIP perks.
9. World of Women (WoW) – Empowering Women in Web3
Created by: Yam Karkai (2021)
Blockchain: Ethereum
Total Supply: 10,000
Created by Yam Karkai in 2021, World of Women is a female-led NFT collection that aims to promote diversity and inclusion in the NFT space. Celebrities like Reese Witherspoon and Eva Longoria have supported the project.
10. NBA Top Shot – Sports NFT Moments
Created by: Dapper Labs & NBA (2020)
Blockchain: Flow
Created by Dapper Labs & NBA on 2020, NBA Top Shot is a Flow Blockchain project that allows fans to collect officially licensed video highlights from NBA games. Some moments have sold for six-figure sums.
Notable sales includes: LeBron James dunk – Sold for $208,000.
How to Connect Your Trust Wallet to NFT Marketplaces
Connecting your Trust Wallet to NFT marketplaces allows you to seamlessly manage and trade digital assets. Here’s a guide to get started:
Step 1: Set up Your Trust Wallet
- Download and set up the Trust Wallet app.
- Secure your wallet and back up your recovery phrase.
- Open your preferred NFT marketplace on your desktop browser.
- For example, visit Blast by entering the URL
blast.io.
Step 3: Connect Your Trust Wallet
Using the Mobile App
- Open Trust Wallet.
- Select the Browser tab and search for “Nouns NFT” or enter the URL
blast.io. - Tap the Done button.
Using the Browser Extension
- Navigate to the
blast.ioURL. - Select Bridge & Earn > Connect Wallet > WalletConnect.
- Open your Trust Wallet app and scan the QR code to connect.
Closing Thoughts
Understanding the differences between fungible tokens and NFTs is essential for navigating the crypto landscape. Fungible tokens, such as those adhering to the ERC20 standard, are pivotal for financial transactions, trading, and utility in blockchain applications. NFTs, created using the ERC721 standard, offer unique ways to own and trade one-of-a-kind digital assets.
For managing these assets, a versatile crypto wallet like Trust Wallet supports both fungible tokens and NFTs. Trust Wallet allows users to securely store, manage, and interact with over 10 million crypto assets across more than 100 blockchains. Whether handling ERC20 tokens or exploring NFTs, Trust Wallet provides seamless access to digital assets, enhancing both security and convenience.
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