Christie’s Retreat from NFTs Reflects a Market in Freefall

Christie’s has announced a strategic reformatting of its digital art sales, effectively closing its dedicated digital art department and folding its operations into its broader 20th- and 21st-century art category. The decision, confirmed in a statement, follows the departure of key personnel, including Nicole Sales Giles, the auction house’s vice president of digital, who confirmed the news to Now Media [1]. A Christie’s spokesperson described the move as a “strategic decision,” emphasizing the company’s commitment to continue selling digital art, albeit under a different framework [2]. This shift marks a reversal from the auction house’s high-profile entry into the NFT space, exemplified by the 2021 sale of Beeple’s Everydays: The First 5000 Days, which fetched $69.3 million and is still the highest price paid for a digital artwork [1].

The decision to downsize its digital art division comes amid a broader slump in the NFT market. By 2022, Christie’s NFT sales had plummeted to $5.9 million, a 96% decline from 2021 levels [1]. In August 2024, further data highlighted the market's downturn, with 95% of NFTs deemed effectively "dead" and the average investor facing a 44.5% loss [1]. The auction house’s move reflects a wider industry trend, with competitors such as Sotheby’s also reducing their NFT divisions, retaining only a handful of staff [1]. Christie’s restructuring under new CEO Bonnie Brennan, who took office in February 2025, appears to align with broader market realities and a recalibration of strategic focus [2].

The closure of the department raises questions about the future of Christie’s on-chain auction platform, 3.0, launched in September 2022. This platform was a cornerstone of Christie’s digital strategy, supporting exhibitions and collaborations during major art events such as Art Basel Miami and Frieze Seoul [3]. However, with the digital art sector struggling—marked by the closures of platforms like MakersPlace, KnownOrigin, and Async Art—Christie’s appears to be shifting away from standalone NFT initiatives and focusing instead on integrating digital art into its broader auction offerings [3]. This move suggests a reduced emphasis on NFT-specific innovation and a more conventional approach to digital art sales.

The auction house’s strategic pivot is also influenced by the increasing role of artificial intelligence in art creation. In February 2025, Christie’s faced backlash from thousands of artists who protested the auction of AI-generated works, arguing that such sales constituted “mass theft” of human creativity [3]. This incident is part of a larger industry debate over the ethical and legal implications of AI in the arts, with similar disputes emerging in other sectors, such as the 2023 lawsuit against Meta over its use of artists’ works to train AI models [3]. These challenges have likely contributed to Christie’s reassessment of its digital art strategy, as it navigates a market where traditional and emerging technologies increasingly intersect.

Christie’s decision underscores the volatile nature of the NFT and digital art markets. While the 2021–2022 period saw unprecedented demand for digital assets, the market has since experienced a dramatic cooling-off, leading many institutions to reevaluate their commitments. The auction house’s shift to integrating digital art into its broader sales reflects a pragmatic approach to adapting to market conditions while maintaining a presence in a sector that once defined a new era for digital creativity and value.

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)