Christie’s NFT Exit: A Missed Innovation Moment

Christie’s, the 258-year-old British auction house, has reportedly closed its dedicated NFT department, folding digital art sales into its broader 20th- and 21st-century art category. The strategic shift, confirmed by a spokesperson to Now Media, follows a broader downturn in the global art and NFT markets. The restructuring includes the departure of at least two employees, including the vice president of digital art, Nicole Sales Giles, though at least one digital art specialist will remain to handle future sales [1]. This move comes four years after Christie’s made headlines with the record-breaking sale of Beeple’s Everydays: The First 5,000 Days for $69.3 million, which marked a pivotal moment in the mainstreaming of digital art and NFTs [2].

Industry observers have linked Christie’s decision to a broader contraction in the global art market. According to the Art Basel & UBS Art Market Report 2025, global art sales fell by 12% in 2024 to $57 billion, with auction house sales—both public and private—dropping by 20% to $23 billion. Digital art adviser and collector Fanny Lakoubay noted that auction houses can no longer justify a standalone department for NFTs when it generates less revenue than other categories, despite some high-profile successes. She emphasized that auction houses focus primarily on secondary sales of well-known artists and brands, a model that has yet to scale effectively for digital art [1].

The NFT market itself has experienced significant volatility in recent years. 2024 was one of the weakest years for trading volume and sales since 2020, with many collectors experiencing substantial losses. However, the market showed signs of recovery in August 2025, with the NFT sector reaching a market capitalization of $9.3 billion—a 40% increase from July—largely driven by Ethereum-based collections and the price movement of Ether (ETH). Despite this rebound, the market has since cooled, with the current NFT market cap sitting at $5.97 billion [1].

Critics argue that Christie’s move is not an indication of declining demand for digital art but rather a symptom of an outdated business model. Benji, an NFT collector and member of the Doomed DAO, suggested that Christie’s decision was driven by the inherent flaws in its approach, particularly its high commission rates—often 25–30%—compared to platforms like Gondi, which charge zero commission. He likened the moment to a “Kodak moment” for Christie’s, a point at which the company failed to adapt to the disruptive forces reshaping its industry. He further argued that the restructuring is ultimately beneficial for collectors and artists, as it reduces the number of value extractors in the space [1].

While Christie’s has been one of the most visible auction houses to engage with NFTs, its exit from the digital art space marks a potential turning point in how traditional institutions approach emerging technologies. The auction house had previously launched a bespoke NFT platform and even explored crypto real estate, but the financial returns from these ventures appear to have fallen short of expectations. As the market continues to evolve, the role of auction houses in the digital art ecosystem remains uncertain, with many suggesting that the future lies in primary market development and the integration of traditional collectors into the Web3 space [5].

The decision has drawn mixed reactions. Some view it as a pragmatic response to market forces, while others see it as a missed opportunity for Christie’s to lead the digital art revolution. With the NFT market showing resilience despite its ups and downs, the long-term impact of Christie’s restructuring on the broader market will depend on how digital art evolves and whether new platforms can fill the gap left by traditional players [1].

Source: [1] Christie's Reportedly Closes Digital Art Department (https://www.artnews.com/art-news/market/christies-reportedly-closes-digital-art-department-1234751156/) [2] Auction giant Christie's winds down NFT department: Report (https://cointelegraph.com/news/auction-christies-shuts-digital-art-nft-division) [3] Christie's winds down digital art department as its NFT ... (https://cryptobriefing.com/christies-beeple-nft-sale-closure/) [4] Christie's closes NFT digital art department and ... (https://www.odaily.news/en/newsflash/447228) [5] UK Auction House Christie's Ends Standalone NFT Unit ... (https://cryptonews.com/news/uk-auction-house-christies-ends-standalone-nft-unit-amid-art-market-slowdown/)