UK Auction House Christie’s Ends Standalone NFT Unit Amid Art Market Slowdown

British auction house Christie’s is winding down its dedicated NFT department, folding it into its broader 20th and 21st-century art division, as the global art market continues to contract.

Key Takeaways:

• Christie’s is shutting down its standalone NFT department and merging it into its broader contemporary art division.
• The move comes amid falling global art sales, with auction house revenues down 20% in 2024.
• Critics say the decision reflects outdated business models, not a lack of demand for digital art.

The decision, described as “strategic,” signals a shift in how the 256-year-old firm will handle digital art sales going forward.

Christie’s confirmed the restructure on Monday, stating it will continue offering digital artworks, including NFTs, but without a standalone department.

Two roles were reportedly cut in the process, including the vice president of digital art, though at least one specialist will remain to handle future NFT sales.

Christie’s had been one of the earliest major players in the NFT space, catapulting digital art into the mainstream in March 2021 with the historic $69.3 million Beeple sale.

It later launched a bespoke NFT auction platform and even ventured into crypto real estate.

The latest move reflects broader pressures in the art world. According to the Art Basel & UBS Art Market Report 2025, global art sales dropped 12% to $57 billion last year, with public and private auction house revenues falling 20% to $23 billion.

Digital art adviser Fanny Lakoubay said in an X post that Christie’s restructuring likely stems from these market dynamics.

“Auction houses can’t justify a whole department when it brings in less revenue than the others,” Lakoubay noted.

“It’s not a great public signal, but auction houses focus on secondary sales — it’s still early for digital art to scale in that model.”

A few thoughts about today's news that @ChristiesInc shut down its digital art department as reported by @nowmedia: https://t.co/AqcDDt8HIu

This decision is probably tied to the current art market contraction (see the myriad of articles about this on artnet news). Auction houses…

Some, however, see opportunity in the pullback. Lakoubay suggests the shift could open space for primary market development and for onboarding traditional collectors into the digital realm.

NFT collector and Doomed DAO member Benji pointed to flaws in Christie’s model, rather than market weakness.

There’s a lot of chatter on CT that this reflects weakness in the perceived demand for digital art or that the institutions are no longer coming for our jpegs.

This couldn’t be further from the truth.

This decision by Christie’s recognises that their business model was… https://t.co/suOjw3lJ97

He criticized the auction house’s high commission rates in contrast with emerging Web3-native platforms like Gondi, which charge zero commission.

“This might be Christie’s Kodak moment,” he said. “One less value extractor means more value for collectors and artists.”

Despite the shake-up, NFT markets aren’t standing still. August saw a resurgence, with market capitalization surging 40% to $9.3 billion, although it has since cooled.

As of today, the total NFT market cap sits at $5.97 billion, up 2% in the last 24 hours.

Top collections like CryptoPunks, Bored Ape Yacht Club, and Pudgy Penguins have posted modest gains, indicating that interest in digital collectibles remains intact.

As reported, Metaverse platform The Sandbox is undergoing a transformation following the departure of its co-founders and a majority takeover by Animoca Brands.

Co-founders Sébastien Borget and Arthur Madrid have stepped back from operational roles, with over half of the company’s workforce also let go.

Robby Yung, CEO of Animoca Brands, has been appointed as the new CEO of The Sandbox.

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