Christie’s Ditches Digital Art Department as NFTs Lose Luster

Christie’s has announced the closure of its digital art department, marking a significant strategic shift for the auction house as the NFT market continues to struggle. The department, led by Vice President Nicole Sales Giles, will be dissolved, with digital art sales now integrated into the broader 20th- and 21st-century art category. According to internal sources and statements from the company, the decision reflects a broader repositioning of digital art within Christie’s traditional sales structure rather than a complete exit from the space [1].

The move follows a dramatic decline in NFT market activity since the peak of 2021, when Christie’s achieved a milestone with the sale of Beeple’s Everydays: The First 5000 Days for $69.3 million. This landmark sale, which marked the first NFT transaction by a major auction house, helped propel NFTs into the mainstream. However, since then, the market has experienced a significant downturn. In 2022, Christie’s reported $5.9 million in NFT sales—a 96 percent drop compared to 2021—highlighting the sector’s ongoing struggles [2].

Analysts point to broader trends in the digital art and NFT space as contributing factors to Christie’s decision. In 2024, reports indicated that 95 percent of NFTs were classified as “dead,” with the average owner experiencing a 44.5 percent loss on their investment. The closure of Christie’s digital art department aligns with a wider industry trend, as competitors like Sotheby’s have also scaled back their NFT divisions, including layoffs in their Metaverse and digital art teams [3].

The decision coincides with the leadership of Bonnie Brennan, who became Christie’s CEO in February 2025. Brennan’s tenure has been marked by strategic overhauls, including a refocusing of the auction house’s priorities. While Christie’s has not abandoned digital art entirely, it is now treating NFTs as a subset of its larger contemporary art offerings. This shift signals a move away from the highly specialized and standalone NFT model that defined the market’s peak [3].

The restructuring also raises questions about the future of Christie’s 3.0 platform, a dedicated on-chain auction platform launched in 2022. The platform, which featured exhibitions and partnerships such as “Getway” events during major art fairs, may now be absorbed into the broader auction house infrastructure. Additionally, the closure has sparked debate about the role of AI in art creation, particularly after Christie’s faced backlash in 2024 for attempting to auction AI-generated works. Critics argued such efforts undermined human creativity and intellectual property rights [3].

The ongoing challenges in the NFT sector are not unique to Christie’s. Over the past two years, platforms like MakersPlace, KnownOrigin, and Async Art have also shut down due to declining interest and investment. Meanwhile, the broader cryptocurrency market has seen mixed signals. Ether, the second-largest cryptocurrency by market capitalization, has experienced a resurgence in 2025, with inflows into Ethereum-based ETFs exceeding $1.2 billion. This renewed institutional interest contrasts with the continued struggles of the NFT market, highlighting the divergence in crypto-related asset categories [4].

Source:

[1] Christie's Reportedly Closes Digital Art Department (https://www.artnews.com/art-news/market/christies-reportedly-closes-digital-art-department-1234751156/)

[2] Christie's winds down digital art department as its NFT ... (https://cryptobriefing.com/christies-beeple-nft-sale-closure/)

[3] Christie's closes its dedicated digital art department (https://www.mitrade.com/insights/news/live-news/article-3-1105964-20250909)

[4] Ethereum Price, ETH Price, Live Charts, and Marketcap (https://www.coinbase.com/price/ethereum)