UK auction giant Christie’s is making significant changes to its operations by closing its dedicated department for non-fungible token (NFT) sales. This restructuring will see the digital art segment integrated into the broader category of 20th and 21st-century art, as reported by Now Media, referencing a statement from a Christie’s spokesperson.
Despite the decision to amalgamate its NFT sales, the esteemed auction house, which has been in operation for 258 years, will continue to sell digital art. However, the restructuring comes amid a notable downturn in the global art market, prompting the auction house to make what it described as a “strategic decision.” Alongside this shift, Christie’s reportedly laid off two employees, including its vice president of digital art, though at least one digital art specialist will remain on the payroll.
Christie’s has made a considerable mark in the NFT market, having sold remarkable artworks like Mike “Beeple” Winkelmann’s Everydays: The First 5000 Days, which fetched a staggering $69.3 million at auction in March 2021. The auction house also saw digital artist Laura El successfully sell her piece, Lonely Island, earlier this year.
The potential market conditions driving this decision were highlighted by Fanny Lakoubay, a digital art adviser, who suggested that Christie’s move might be a direct response to the ongoing contraction in the art market. According to the Art Basel & UBS Art Market Report 2025, global art sales have dropped 12% in 2024 to $57 billion, and public and private sales by auction houses are down by 20% to $23 billion. Lakoubay argued that auction houses are likely to rethink maintaining departments that do not yield comparable revenue, even with some recent successful sales. She noted that the current focus of auction houses primarily revolves around secondary sales of established artists, which has yet to fully adapt to the evolving digital art scene.
In contrast, an NFT collector affiliated with the Doomed decentralized autonomous organization voiced a differing perspective, asserting that Christie’s move does not imply a decline in demand for digital art but rather points to a flawed business model. This individual, using the handle Benji, remarked that the decision could symbolize Christie’s “Kodak moment,” where the company is pivoting away from a model that risks becoming outdated. They raised concerns about high commission rates in a market where competitors might offer zero commissions for similar transactions.
The NFT market itself has experienced a rocky road over the last few years, with 2023 flagged as particularly challenging in terms of trading volume and sales. Nevertheless, recent months have shown a resurgence in the sector, with the market capitalization reaching over $9.3 billion in August, a 40% increase from the previous month. Although the market has exhibited signs of cooling, it still reported a 2% uptick in value over the last 24 hours, currently sitting at approximately $5.97 billion.
In terms of individual collections, prominent NFTs have shown positive activity, with CryptoPunks and Yuga Labs’ Bored Ape Yacht Club witnessing notable increases in trading volume and sales. As the digital art landscape continues to evolve, all eyes will be on how institutions like Christie’s adapt to new market realities and respond to the shifting demands of art collectors and investors alike.
