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UK Auction House Christie’s Discontinues Independent NFT Division Following Decline in Art Market Activity
The British auction house Christie’s is concluding its dedicated NFT division, integrating it into its larger 20th and 21st-century art sector, as the global art market continues to decline.
Key Takeaways:
- Christie’s is dissolving its independent NFT division and incorporating it into its broader contemporary art sector.
- This decision comes in response to decreasing global art sales, with auction house revenues dropping 20% in 2024.
- Critics argue that this choice reflects outdated business strategies rather than a diminished interest in digital art.
The choice, characterized as “strategic,” indicates a change in how the 256-year-old company will approach digital art sales in the future.
Christie’s confirmed the reorganization on Monday, stating it will still provide digital artworks, including NFTs, but without a separate department.
Christie’s Eliminates Digital Art VP as NFT Division Restructures
Two positions were reportedly eliminated during this process, including the vice president of digital art, although at least one expert will remain to oversee future NFT sales.
Christie’s was among the first major entities in the NFT arena, bringing digital art into the mainstream in March 2021 with the landmark $69.3 million sale of Beeple.
It subsequently launched a custom NFT auction platform and even explored crypto real estate.
This latest action reflects wider challenges within the art industry. According to the Art Basel & UBS Art Market Report 2025, global art sales fell 12% to $57 billion last year, with revenues from public and private auction houses declining 20% to $23 billion.
Digital art consultant Fanny Lakoubay remarked in a post on X that Christie’s restructuring is likely a response to these market conditions.
“Auction houses can’t sustain an entire department when it generates less revenue than others,” Lakoubay observed.
“It’s not a favorable public indication, but auction houses concentrate on secondary sales — it’s still early for digital art to expand within that framework.”
Related Posts
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…— Fanny Lakoubay (@flakoubay) September 8, 2025
Conversely, some view the retreat as an opportunity. Lakoubay suggests that this transition could create room for primary market growth and for integrating traditional collectors into the digital space.
NFT collector and Doomed DAO member Benji pointed out issues with Christie’s approach, rather than market fragility.
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 recognizes that their business model was… https://t.co/suOjw3lJ97— Benji (@8888Benji) September 8, 2025
He criticized the auction house’s elevated commission rates compared to emerging Web3-native platforms like Gondi, which impose no commission.
“This might be Christie’s Kodak moment,” he stated. “One less value extractor means more value for collectors and artists.”
NFT Market Cap Rebounds 40% in August, Now at $5.97B
Despite the upheaval, NFT markets are not stagnant. August experienced a revival, with market capitalization increasing 40% to $9.3 billion, although it has since moderated.
As of today, the overall NFT market cap stands at $5.97 billion, reflecting a 2% increase in the past 24 hours.
Leading collections such as CryptoPunks, Bored Ape Yacht Club, and Pudgy Penguins have shown modest gains, suggesting that interest in digital collectibles remains strong.
As reported, the Metaverse platform The Sandbox is undergoing a transformation following the exit of its co-founders and a majority acquisition by Animoca Brands.
Co-founders Sébastien Borget and Arthur Madrid have stepped back from operational roles, with over half of the company’s staff also being let go.
Robby Yung, CEO of Animoca Brands, has been appointed as the new CEO of The Sandbox.
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