Christie’s, the 258-year-old UK auction giant, is reportedly closing its standalone NFT and digital art department in what it calls a “strategic decision.” While this marks a shift in approach, Christie’s confirmed it will continue auctioning NFTs under its broader 20th and 21st-century art category.
Christie’s Restructures Digital Art Division
According to reports, the restructuring includes layoffs of at least two employees, including its Vice President of Digital Art, though at least one specialist will remain on staff. Christie’s emphasized that the move does not mean a full exit from the digital art space, but rather a reorganization of how NFT sales are handled within the company.
The auction house has been a pioneer in the NFT space, most notably selling Beeple’s “Everydays: The First 5000 Days” for $69.3 million in March 2021. Christie’s also launched an NFT auction platform in 2022 and even formed a crypto-focused real estate team in 2023.
Industry experts suggest the change is linked to the ongoing contraction of the global art market. According to the Art Basel & UBS Art Market Report 2025, worldwide art sales declined 12% in 2024 to $57 billion, with auction houses seeing a sharper 20% decline to $23 billion.
As digital art adviser Fanny Lakoubay pointed out, “Auction houses can’t justify a whole department when it brings in less revenue than the others, even with some recent successful sales.”
Is This a “Kodak Moment”?
Some industry voices argue the move reflects structural flaws in Christie’s NFT business model. NFT collector Benji, from the Doomed DAO, suggested the firm’s high commission rates of 25-30% were unsustainable in a digital art market where competitors like Gondi charge zero commission.
He argued that Christie’s exit might even be “a net positive for artists and collectors,” as it reduces middlemen extracting value from creators.
The State of the NFT Market
The NFT sector itself has been volatile. After enduring its worst trading year since 2020 in 2024, the market rebounded in mid-2025, reaching a $9.3 billion capitalization in August. As of now, the market is valued at $5.97 billion, up 2% in the last 24 hours.
Top collections remain active:
- CryptoPunks: up 1.9% in 24 hours, with $208K in trading volume.
- Bored Ape Yacht Club: up 3.7%, over $1.2M in daily volume.
- Pudgy Penguins: up 2%, with $905K in trades.
What This Means for Digital Art
Christie’s restructuring signals that while NFTs remain part of the fine art world, the hype-driven boom has given way to more cautious integration. Rather than abandoning NFTs, Christie’s is embedding them within its core auction business, focusing on established collectors and secondary sales.
The decision underscores a broader truth: NFTs are not disappearing, but their role in the art world is being reshaped as the market matures.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.