Sotheby’s, the venerable auction house boasting a history spanning 279 years, has left a substantial mark on the digital art market in the current year. The esteemed fine arts auction house reported a noteworthy achievement, with digital art sales reaching “close to $35 million” in 2023, signaling a standout year for this burgeoning sector.
On December 23, Michael Bouhanna, Sotheby’s Vice President and Head of Digital Art, characterized the year-end results for digital art as “one of the most exciting years” for the auction house.
A particularly noteworthy milestone was Sotheby’s inaugural live digital art auction, attended by 300 participants and resulting in $12 million in sales. The auction house further distinguished itself by setting a new record for an individual digital artwork, with Dmitry Chernyak’s non-fungible token (NFT) ‘Ringers #879’ fetching an impressive $6.2 million.
Sotheby’s actively embraced the digital art realm by hosting over 25 auctions dedicated exclusively to digital art or incorporating it into contemporary art sales. The company took a significant step into the blockchain space with the introduction of its on-chain marketplace for the secondary trading of NFTs, named Sotheby’s Metaverse.
In a collaboration demonstrating the intersection of generations and artistic mediums, Sotheby’s partnered with 99-year-old artist Vera Molnar and Martin Grasser to launch the highly successful NFT collection “Themes and Variations.” This venture underscored the universal appeal of digital art, transcending age barriers.
Earlier in the year, Sotheby’s etched its name in history by auctioning the manuscript of Neal Stephenson’s cult novel “Avalanche,” believed to feature the first-ever use of the term “metaverse.” Looking forward, Sotheby’s aims to refine its strategies in the primary market and maintain its commitment to supporting creators in the evolving landscape of digital and traditional art.
Sotheby’s Enters NFT Space with Bitcoin Ordinals Collection, Reflecting Rising Interest in Digital Art Market
The esteemed 279-year-old auction house ventured into the NFT space in April 2021, subsequently orchestrating a series of groundbreaking digital art sales.
The recent resurgence of the NFT market, coupled with a notable upswing in Bitcoin prices, has intensified interest and trade volumes within the digital art sector. November alone saw the overall trade volume approaching $1 billion, with the average NFT transaction value experiencing a remarkable 114% surge. The trading volume, reflecting a 125% increase in November, indicates a shift in user behavior compared to previous downturns in NFT trading. This upward trajectory suggests a growing willingness among users to participate in higher-value transactions.
It’s crucial to acknowledge that investments in crypto assets, such as NFTs, are unregulated and may not be suitable for all investors. These investments come with the risk of complete loss and are not intended for or accessible to investors in Spain.
On December 7, Sotheby’s made an announcement regarding the sale of a Bitcoin Ordinals collection, marking a significant move for the 279-year-old auction house. The collection, sourced from BitcoinShrooms, an ordinals project created by the pseudonymous artist Shroomtoshi, represents the first time that pieces from this collection will be available to the public.
The collection comprises a series of pixel art pieces that draw inspiration from Bitcoin’s history and fundamental principles, encompassing memes and technical concepts associated with the cryptocurrency.
