Christie’s auction house has made the significant decision to close its digital art department, which has been responsible for managing its high-profile NFT sales. This strategic move indicates a shift in the company’s approach, as the auction house will now integrate NFT offerings within its established 20th and 21st-century art categories. The decision comes in the wake of a significant downturn in the NFT market, which has affected global art sales and cast doubt on the future of digital assets.
Previously, Christie’s was at the forefront of the digital art landscape, achieving record-breaking sales such as Mike “Beeple” Winkelmann’s NFT piece, “Everydays: The First 5000 Days,” which fetched an astounding $69.3 million back in 2021. However, despite these early triumphs, recent market conditions have prompted the organization to reduce its dedicated NFT operations.
The closure of Christie’s 3.0, a platform designed exclusively for NFTs, means that these digital assets will no longer be managed by a specialized team. Instead, the auction house will continue to sell NFTs as part of its broader art offerings. This shift aligns with leadership changes at Christie’s, most notably the appointment of Bonnie Brennan as CEO earlier in the year.
This strategic pivot comes as the digital art sector continues to face substantial volatility. The initial enthusiasm for NFTs has waned, with trading volumes declining and diminished public interest in digital collectibles becoming evident. Industry observers caution that the closure of the digital art department may signal a reduction in institutional interest in NFTs within traditional auction houses.
As part of the restructuring, Christie’s has also laid off several employees, including its vice president of digital art. While the company has stated that it will retain at least one digital art specialist, this personnel reduction raises further concerns about the sustainability of NFT sales in the auction sector.
Fanny Lakoubay, a digital art advisor and curator, suggested that Christie’s decision is intrinsically linked to the ongoing contraction of the broader art market. According to the Art Basel & UBS Art Market Report 2025, the global art market experienced a 12% drop in sales in 2024, intensifying the uncertainty surrounding NFT auctions. Lakoubay noted that auction houses are often reluctant to maintain separate departments for segments that generate lower revenue.
The digital art market, particularly in terms of NFTs, has seen tumultuous times since its peak in 2021. Following a dramatic slowdown in 2023 and into 2024, NFT sales have sharply decreased. While some notable NFTs still command significant prices, the overall market has been plagued by instability and a waning interest from investors.
These challenging market conditions, coupled with broader issues facing the global art sector, have prompted Christie’s and other auction houses to reevaluate their strategies surrounding digital art. Many industry insiders view Christie’s decision as a reflection of a larger trend toward caution amid market fluctuations. Nevertheless, there are lingering signs of potential recovery, as the NFT market recently recorded a 40% increase in market capitalization, spurred by Ethereum-based collections and the rise in Ether’s value. However, the future of NFTs within auction houses remains uncertain, as institutions like Christie’s navigate their evolving role in the digital art landscape.
