Fungibility
Fungibility is what makes tokens usable as money or market shares.
Prediction Markets 101 editorial team Updated April 16, 2026 1 min read
Definition
Fungibility means that every unit of a token is interchangeable with every other unit. All USDC tokens are fungible with each other; all YES tokens in a single market are fungible.
Plain-English explanation
Fungible tokens can be aggregated, split, and traded without tracking individual units. Non-fungible tokens (NFTs) are the opposite — each one is unique. In Polymarket, conditional tokens are fungible within a single market/outcome but not across them.