The cryptocurrency industry is currently experiencing a significant transition, with meme coins transforming into utility tokens. Initially created as a fun and satirical response to traditional financial systems, meme coins are now evolving to offer practical utility, adding a layer of complexity to their journey. Shytoshi Kusama, the lead developer of Shiba Inu, has acknowledged this shift, although he believes it is happening at a slower pace than desired. He points to TREAT, a new token within the Shiba Inu ecosystem, as a frontrunner in this transition.
Kusama’s recognition of this transition was prompted by a tweet from Moonrock Capital CEO Simon Dedic, who described meme coins as “useless” but noted a trend where these tokens are redefining their core functions. Dedic predicts that this trend will continue to grow and could become a significant phenomenon in the crypto industry in the near future.
TREAT plays a crucial role in the Shiba Inu ecosystem as a leading cryptocurrency in this evolving landscape. As part of the Shiba Inu ecosystem, TREAT serves multiple purposes, primarily providing liquidity for the upcoming SHI stablecoin. TREAT is set to replace BONE as the reward token for ShibaSwap and will also offer rewards for the metaverse and blockchain version of the Shiba Inu Collectible Card Game.
The primary function of TREAT is to provide liquidity for SHI, a stablecoin currently in development that aims to compete with USDT, the leading stablecoin in the market. SHI is designed as a decentralized currency for Shibarium, Shiba Inu’s layer-2 solution. Additionally, SHIB, Shiba Inu’s flagship memecoin, has also evolved to offer utility beyond speculative trading, with applications such as online purchases through platforms like Shopping.io.
Similarly, Dogecoin (DOGE), a peer of Shiba Inu, is also utilized as a payment method on various online platforms. However, DOGE’s lack of a capped supply makes it highly inflationary and less effective as a store of value compared to other cryptocurrencies.
In conclusion, the transition of meme coins into utility tokens signifies a maturation of the cryptocurrency industry, where tokens are moving beyond mere speculation to offer tangible value and practical use cases. TREAT’s role in the Shiba Inu ecosystem exemplifies this shift, highlighting the evolution of cryptocurrencies towards broader utility and functionality.