Christie's closes digital art department, NFT business comes to an end

On September 12, CoinDesk reported that Christie's, a top global auction house, has officially closed its digital art department, ending the pilot program for selling NFT artworks that had been running since 2021.

Nicole Sales Giles, a key leader of the department, and another key employee have departed, with only digital art expert Sebastian Sanchez remaining in New York to oversee follow-up work.

This decision reflects the ongoing downturn in the NFT market. Data shows that NFT transaction volume plummeted in the last quarter, decreasing 45% month-over-month to just $867 million. The floor prices of most major NFT projects also saw a significant correction, signaling a clear cooling of market sentiment. In contrast, the price of Ethereum (ETH) bucked the trend by 76% during the same period, demonstrating a structural shift in capital flows within the cryptocurrency market.

Christie's has been actively involved in the NFT space since 2021, selling digital artist Beeple's work "Everydays: The First 5000 Days" for a staggering $69.3 million, marking a pioneering move by a traditional auction house into crypto art. However, as the market landscape shifts, its digital strategy has undergone adjustments.

This downsizing is seen as a restructuring of Christie's business amidst the waning popularity of NFTs, and also reflects the growing caution among institutional investors regarding the current state of digital asset collecting.

Industry analysts believe that despite short-term pressures in the NFT market, some professionals remain optimistic about the long-term prospects of integrating blockchain technology with art, but the path forward may require further exploration and screening.