To celebrate is to do something special and joyful because of a happy event or achievement. People might have parties, share food, or take part in ceremonies.
From Latin 'celebrare' meaning 'to frequent, honor, or make famous', from 'celeber' meaning 'crowded, much-visited'. Celebrations were things that drew people together in numbers.
At its root, to celebrate is to make something 'well-attended' and known. So even a quiet celebration is, in a way, your brain gathering a crowd of attention around a moment and saying, 'This matters.'
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