Christie’s Shelves NFT Spotlight, Merges Digital Art into Mainstream Offerings

Christie’s has reportedly closed its digital art department, marking a strategic shift away from the NFT space, according to reports from Now Media and other outlets. The auction house confirmed the move, stating that digital works will now be sold within its broader 20th- and 21st-century art category. The decision follows a sustained decline in NFT sales and reflects the broader downturn in the digital art market since its peak in 2021. The closure also comes amid similar moves by Christie’s rivals, such as Sotheby’s, which has reportedly reduced its NFT workforce significantly.

The decision to close the digital art department coincides with the appointment of Bonnie Brennan as Christie’s new CEO in February 2025. This shift follows a four-year period marked by a dramatic transformation in the NFT market, which saw a sharp decline after a record-breaking $69.3 million sale of Beeple’s Everydays: The First 5000 Days in 2021. The sale was not only a milestone for Christie’s but also catalyzed the NFT boom of 2021–22. However, by 2022, Christie’s reported $5.9 million in NFT sales, a 96% drop from its 2021 figures. A report from 2024 revealed that 95% of NFTs had become “dead” by then, with the average investor facing a 44.5% loss on their holdings.

The NFT market’s broader struggles have not been limited to Christie’s. Reports indicate that the overall market has seen a dramatic reduction in investor interest and transaction volumes. Despite recent signs of recovery in the Ethereum-based NFT market—such as reduced gas fees, technological advancements, and institutional adoption—traditional auction houses are reevaluating their strategies in light of the volatile market. While some NFT projects and platforms have seen renewed activity and growth, the auction sector remains cautious, given the persistent challenges of regulatory uncertainty, market volatility, and sustainability concerns.

Christie’s move reflects a wider trend among traditional institutions to pivot away from speculative digital assets toward more established art categories. The auction house’s spokesperson noted that while the NFT space would no longer be treated as a standalone category, digital art would continue to be sold as part of its broader modern and contemporary art offerings. This strategic decision aligns with a broader industry trend of de-prioritizing NFTs in favor of more stable revenue streams and core auction categories.

The decision to close the digital art department also signals a shift in Christie’s broader business strategy under Brennan’s leadership. The new CEO’s appointment was expected to bring changes to the auction house’s approach to digital innovation and market positioning. The move to consolidate digital sales into broader categories may indicate a more conservative stance in the NFT space, particularly in a market still grappling with regulatory and financial uncertainties.

Christie’s did not provide further comments in response to requests for clarification. However, the decision underscores the ongoing re-evaluation of NFTs as a commercial tool in the art world, even as the broader digital asset market continues to evolve. For now, Christie’s is taking a more integrated approach to digital art, signaling its intent to remain competitive while navigating a challenging and rapidly shifting market landscape.

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/)