Christie’s, the world’s largest art auction house by sales volume, has officially announced the closure of its standalone digital art department, which was primarily dedicated to managing NFT (non-fungible token) sales. This strategic move marks a significant shift as the renowned auction house opts to incorporate NFT and digital art offerings into its broader 20th and 21st-century art category. Such integration indicates a retreat from specialized NFT operations, adapting to a market that has seen a noticeable decline in enthusiasm for NFTs.
Despite the closure of the dedicated department, Christie’s will continue to sell digital works, including NFTs. This decision comes in response to a downward trend in the NFT market and reflects the auction house’s adjustment to changing dynamics within the art community.
Christie’s initially paved the way for NFTs to be recognized as a legitimate form of fine art. It achieved global headlines in March 2021 when it auctioned off digital artist Beeple’s groundbreaking piece, Everydays: The First 5,000 Days, for a staggering $69.3 million. This sale was significant not only as a record-breaking event but also as the first major pure NFT transaction by a leading auction house. The hype surrounding this sale propelled the NFT market to a peak valuation exceeding $40 billion during the 2021-2022 period. Following up on this success, Christie’s conducted other notable sales, including another artwork by Beeple, Human One, which sold for $28.9 million in November 2021, and launched Christie’s 3.0, a fully on-chain NFT auction platform in 2022.
The now-closed department, created in 2022, explored various possibilities regarding Web3 integrations, forming partnerships with platforms such as OpenSea and even establishing a crypto-focused real estate team in 2023. This foresight positioned Christie’s at the cutting edge of combining blockchain technology with traditional art markets.
However, the recent decision reflects a broader decline within the global art market, as outlined in the Art Basel & UBS Art Market Report 2025. The report highlighted a 12% drop in global art sales, totaling $57 billion, alongside a 20% revenue fall for auction houses, which amounted to $23 billion. NFT-specific sales have been particularly erratic, with alarming estimates suggesting that 96% of NFTs may now be considered “dead”—essentially worthless or illiquid.
Though the NFT market experienced a brief resurgence in mid-2025, with weekly sales ranging from $115 million to $170 million, this momentum has waned to approximately $92 million per week as of early September. Major platforms like Bybit, Kraken, and GameStop have shuttered their NFT marketplaces, citing poor trading volumes as a driving factor.
The change at Christie’s also aligns with recent management shifts, particularly following the February 2025 appointment of new CEO Bonnie Brennan. As part of an effort to streamline operations, at least two positions were affected by the departmental closure, including that of Vice President of Digital Art, Nicole Sales Giles. A spokesperson for Christie’s characterized the decision as a “strategic choice” aimed at enhancing the efficiency of digital art sales.
In reaction to the news, digital art advisor Fanny Lakoubay remarked that auction houses can no longer maintain dedicated departments for NFTs when revenues do not compare favorably to those from traditional art categories. NFT collector Benji referred to this moment as Christie’s “Kodak moment,” criticizing high commission rates as excessive when compared to zero-fee platforms emerging in the Web3 space.
This trend of scaling back on NFT-specific operations is not unique to Christie’s; rival auction house Sotheby’s also laid off several NFT staff in 2023 and has since reduced its dedicated NFT focus while still ensuring some digital art sales remain viable.
The implications of Christie’s closure of its digital art department signal a diminishing interest from the mainstream art community in NFTs as an independent category. While digital art itself will undoubtedly persist, the withdrawal of dedicated auctions might push artists toward niche Web3 platforms to maintain visibility and engagement.
Despite the setbacks, the NFT market saw a notable 40% increase in market cap, climbing to over $9 billion by August 2025, largely fueled by Ethereum-based collections. Christie’s integration strategy could still facilitate hybrid sales that combine physical and digital works, hinting at a new path forward.
As the art sector continues to navigate the turbulent landscape, a notable shift is occurring toward AI-generated art and sustainable blockchain applications. However, NFTs may find it challenging to restore their 2021 energy and appeal as attractive fine art investments without institutional support from entities like Christie’s.
This development serves as a reminder of the swiftly changing nature of the NFT boom—a transition from revolutionary disruptor to a more integrated niche within just four years. For collectors and artists alike, this emphasizes the importance of engaging with diverse platforms beyond traditional auction houses.
