ATP, or adenosine triphosphate, is crucial for cellular processes as it serves as the primary energy carrier in cells. It stores and provides energy for various biological activities, including muscle contraction, protein synthesis, and cell signaling. When ATP is hydrolyzed, it releases energy by breaking one of its high-energy phosphate bonds, converting it to ADP (adenosine diphosphate) or AMP (adenosine monophosphate). This process is central to metabolism, as cells continuously regenerate ATP through cellular respiration, ensuring a steady supply of energy for sustaining life.