Fungible tokens are digital assets that are interchangeable and identical in value. This means that each token can be exchanged for another token of the same type without any loss of value. A common example of fungible tokens is cryptocurrencies like Bitcoin or Ethereum, where each unit holds the same worth as any other unit of the same currency. These tokens are often used in various applications, including online transactions and decentralized finance. Because they are standardized, fungible tokens simplify trading and valuation, making them a popular choice for investors and users in the blockchain ecosystem.