Christie’s, widely recognized as the world’s largest art auction house by sales volume, has announced the closure of its standalone digital art department, which primarily handled NFT (non-fungible token) sales.
This move integrates NFT and digital art offerings into the broader 20th and 21st-century art category, signaling a strategic pivot away from specialized NFT operations. While the auction house will continue to sell digital works, including NFTs, the decision reflects the cooling enthusiasm for NFTs in the traditional art world following years of market contraction.
Christie’s was a pioneer in legitimizing NFTs as fine art. In March 2021, it made headlines by auctioning digital artist Beeple (Mike Winkelmann)’s Everydays: The First 5,000 Days for a record-breaking $69.3 million—the first major pure NFT sale by a leading auction house.
This transaction, which exceeded estimates and drew global attention, helped propel the NFT market to a peak valuation of over $40 billion in 2021-2022. Christie’s followed up with other high-profile sales, such as Beeple’s Human One for $28.9 million in November 2021, and launched Christie’s 3.0 in 2022, the first fully on-chain NFT auction platform for a traditional auction house.
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The platform facilitated sales of works by artists like Refik Anadol, Tyler Hobbs, and even Bitcoin Ordinals in 2024. The department, established in 2022, also explored Web3 integrations, including partnerships with platforms like OpenSea and a crypto-focused real estate team launched in 2023.
These efforts positioned Christie’s at the forefront of blending blockchain technology with established art markets. The closure comes amid a broader slump in the global art market and a sharp decline in NFT activity:
According to the Art Basel & UBS Art Market Report 2025, global art sales fell 12% to $57 billion in 2024, with auction house revenues dropping 20% to $23 billion. NFT-specific sales have been even more volatile, with a 2024 NFTevening report estimating that 96% of NFTs are now “dead” (i.e., worthless or illiquid).
While the NFT market saw a brief rebound in mid-2025 (with weekly sales hitting $115-170 million in July-August), activity has slowed to around $92 million per week by early September. High-profile platforms like those from Bybit, Kraken, and GameStop have also shut down their NFT marketplaces due to low trading volumes.
The decision follows the February 2025 appointment of new CEO Bonnie Brennan and aligns with cost-cutting measures. At least two staff members were affected, including Vice President of Digital Art Nicole Sales Giles, though one specialist remains to oversee integrated sales. A Christie’s spokesperson described it as a “strategic decision” to reformat digital art sales for efficiency.
Digital art advisor Fanny Lakoubay noted on X (formerly Twitter) that auction houses can no longer justify dedicated departments when NFT revenues lag behind traditional categories, despite occasional successes.
NFT collector Benji echoed this, calling it Christie’s “Kodak moment” and criticizing the house’s 25-30% commission rates as unsustainable compared to zero-fee Web3 platforms like Gondi. This isn’t isolated to Christie’s; rival Sotheby’s laid off multiple NFT staff in 2023 and has since scaled back, though it maintains a digital art presence through sales like its 2024 CryptoPunk auction for $66,000—far below 2021 peaks.
Implications for the NFT Art Market
Christie’s move underscores waning mainstream art-world interest in NFTs as a standalone category. While digital art will persist, it may lose the prestige of dedicated auctions, potentially pushing creators toward niche Web3 platforms.
NFTs aren’t vanishing; the market cap surged 40% to over $9 billion in August 2025, driven by Ethereum-based collections. Christie’s integration could still enable hybrid sales, blending physical and digital works.
The art sector is adapting to volatility, with focus shifting to AI-generated art and sustainable blockchain uses. However, without institutional backing like Christie’s, NFTs may struggle to regain their 2021 hype as viable fine art investments.
This development highlights the NFT boom’s fleeting nature: from revolutionary disruptor to integrated niche in just four years. For collectors and artists, it emphasizes the need for diversified platforms beyond traditional auction houses.