The tulip became the famous speculative asset in the 17th-century Tulip mania bubble. In the Dutch Republic, rare tulip varieties attracted intense interest and were traded at prices far above ordinary flower values.
Tulip contracts changed hands through a market that included growers, merchants, and speculators. Prices rose dramatically during 1636 and early 1637, then collapsed in February 1637 when buyers became unwilling to meet previously quoted prices. The episode is often presented as the first major speculative bubble, although historians debate its scale and the extent of its impact on the wider Dutch economy.
Tulip mania is also distinct from a stock-market crash because tulip bulbs and contracts were the assets involved, not company shares on an exchange. The story remains useful for explaining how expectations, scarcity, leverage, and herd behavior can drive prices away from practical value.