The NFT Craze Fades: Top Auction Houses' Crypto Assets Attempts

As the price of Bitcoin continues to rise, Ethereum is also approaching its 2021 high, and those in the art world who once had high hopes for Crypto Assets are once again stirring. Early signs indicate that pioneers in the art industry are indeed seizing this trend. A few weeks after President Trump was re-elected, Crypto Assets surged rapidly, and he showed a strong commitment to supporting decentralized digital assets.

Next month, a well-known auction house will accept ETH or BTC payments at its first auction in Saudi Arabia, marking the first time a traditional auction house supports cryptocurrency payments for the entire physical auction event. The auction house stated that this change could bring in a new group of buyers in regions where digital art and cryptocurrency activity are vibrant. The auction features a total of 119 lots, including modern and contemporary artworks from the West and Saudi Arabia, luxury items, and a jersey worn by footballer Cristiano Ronaldo, as well as a generative "AI data painting" created by leading practitioner Refik Anadol.

In fact, before the outbreak of the COVID-19 pandemic, the art market found it difficult to attract people from the tech industry due to its inherent stylistic conflicts. The rise of non-fungible tokens (NFT) has indeed brought some new wealthy Crypto Assets individuals. NFT is a unique digital asset that connects art with blockchain and can be used to create geometric abstract paintings and cartoon comics.

In 2021, several auction houses began accepting Crypto Assets for the purchase of certain physical artworks. Since then, eligible physical pieces have started to tilt towards tech tastes, including a bright yellow painting created by Keith Haring in 1984, depicting a crowd mesmerized by computers, which sold for £4.3 million. Now, every renowned auction house has dedicated NFT and digital art platforms where sellers and buyers can use Crypto Assets.

For the art market, practitioners hope to use NFTs and their related alternative currencies to broaden the channels for new buyers to enter the usually higher-priced art sector. Some investors have personally completed this journey, from purchasing NFTs from digital artists to collecting contemporary artists' works, and finally to acquiring heavyweight modern artworks.

However, not everyone views the impact of Crypto Assets on the art market with optimism. Some art consultants believe that the market atmosphere is stable and forward-looking, having rid itself of the turbulence caused by Crypto Assets speculators. The image of encryption primarily being associated with young buyers also clashes with the current lack of diversity in the art auction market itself. Furthermore, newcomers are often viewed with suspicion, after all, the art market is largely characterized by conservatism and closure.

Deeper concerns lie in the possibility that Crypto Assets could be used for money laundering. In China, Crypto Assets are banned, based on numerous anti-money laundering cases. In the EU, the latest anti-money laundering and counter-terrorism financing rules have tightened regulations on all businesses providing services related to Crypto Assets, including a ban on anonymous payments.

Nevertheless, the auction houses are still actively exploring the encryption currency sector. One auction house stated that its NFT sales have reached $150 million to date. Although the NFT market is currently experiencing a downturn, there may be opportunities for recovery as the market improves. According to the latest global art market outlook, 12% of experts are optimistic about the performance of NFTs this year, a figure that, while far below the previous high of 73% in 2023, is twice that of 2024.

It is worth noting that the average age of NFT buyers is 42 years old, while the average age of all auction participants is 54 years old. This aligns with a certain auction house's strategy to target the younger generation, as its new CEO emphasized that the plan is to "preserve cultural heritage while focusing on innovation—attracting new audiences, regions, and technologies."

In fact, the art market has been in a明显低迷状态 for the past two years, urgently needing the introduction of fresh blood. According to relevant data, the total auction amount of major auction houses decreased by 26% in 2024, while it decreased by 19% in 2023.

In this context, any attempts that may bring new opportunities are worth paying attention to. As the Crypto Assets market heats up again, traditional auction houses must also be prepared to welcome this transformation that could change the industry's landscape.