On Solana, both regular tokens and NFTs use the SPL Token standard — but they have fundamental differences in supply, divisibility, and use cases. Here's everything you need to know.
What is a Fungible SPL Token?
A fungible token is one where every unit is identical and interchangeable. Like currency — one dollar is the same as any other dollar. Examples: BONK, JUP, WIF, USDC.
- Supply: typically millions to trillions
- Decimals: usually 6 or 9
- Each unit: identical, interchangeable
- Use cases: currency, DeFi, memecoins, utility tokens
What is a Solana NFT?
An NFT (Non-Fungible Token) is unique and non-interchangeable. Each NFT has a distinct identity. Technically on Solana, NFTs are SPL tokens with supply=1 and decimals=0.
- Supply: exactly 1
- Decimals: 0 (indivisible)
- Each unit: unique, one-of-a-kind
- Use cases: digital art, collectibles, gaming items, PFPs
Technical Differences
- Metadata: Both use Metaplex metadata, but NFTs include additional fields like attributes, properties, and seller fee basis points
- Compressed NFTs (cNFTs): A newer Solana innovation that stores NFT data more efficiently on-chain — costs as little as $0.001 per mint
- Token-2022: The new SPL token standard supports advanced features like transfer fees, non-transferable tokens, and more
Which Should You Create?
- Create an SPL Token if: You want a currency, memecoin, utility token, or governance token with divisible supply
- Create an NFT if: You want unique digital collectibles, art, game items, or proof-of-membership tokens