Christie’s Merges Digital Art into Traditional Amid NFT Market’s Long Winter

Christie’s, the renowned British auction house, has announced the closure of its standalone digital art department, signaling a strategic shift as the NFT market continues to face headwinds. The move, confirmed by a Christie’s spokesperson, sees the firm refocusing digital art sales within its broader 20th and 21st Century Art category rather than maintaining a separate unit. This decision follows the departure of key personnel, including Nicole Sales Giles, the vice president of digital, who confirmed the restructuring to Now Media. A spokesperson described the change as a “strategic decision to reformat digital art sales,” emphasizing that the auction house is not abandoning digital art but rather adjusting its approach amid a cooling market [1].

The decision comes nearly four years after Christie’s made history with the $69.3 million sale of Beeple’s Everydays: The First 5000 Days—an NFT that catalyzed a broader surge in digital art investment and sales. At the time, the auction was widely credited with legitimizing NFTs as a viable medium for fine art. However, the market has since experienced a sharp decline. Christie’s NFT sales dropped from $5.9 million in 2022—a 96 percent decline from 2021 levels—and by August 2024, reports indicated that 95 percent of NFTs had become effectively “dead,” with most owners reporting losses on their investments [2].

The restructuring of Christie’s digital art initiatives is part of broader changes under the leadership of newly appointed CEO Bonnie Brennan, who took over in February. The decision to fold the digital art department into the contemporary art division is seen as a pragmatic response to declining demand, shifting consumer priorities, and the growing influence of AI in art creation. Earlier in the year, Christie’s faced backlash from artists over its plans to auction AI-generated art, a move that critics described as “mass theft” of human creativity. This highlights the ongoing tensions between digital artists, traditional institutions, and emerging technologies in the art world [3].

The auction house’s exit from a dedicated NFT strategy mirrors broader industry trends. Over the past two years, platforms such as MakersPlace, KnownOrigin, and Async Art have also shut down as the market lost momentum. Christie’s also operates an on-chain auction platform, 3.0, which was launched in 2022 as part of its digital art initiatives. However, with the dissolution of the dedicated digital team, the future of this platform remains uncertain. Meanwhile, the role of NFTs in the art world appears to have diminished, as institutions increasingly pivot away from specialized NFT divisions [4].

Despite these developments, Christie’s has not ruled out participation in the digital art market. It remains committed to selling digital works, albeit under broader categories. This shift marks a departure from the standalone focus that defined the NFT market’s peak in 2021. As the auction house refocuses its strategy, the decision reflects the broader reality of a market that has yet to regain its former vitality. The move also underscores the challenges of sustaining long-term institutional support for digital art in an evolving landscape shaped by both technological and artistic forces [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] Leading Art Auction Is Quiting The NFT Market (https://beincrypto.com/christies-nft-art-auction-department-shut-down/)