Sotheby’s Celebrates a Record-Breaking Year for Digital Art Sales

Sotheby’s, one of the world’s oldest and most prestigious auction houses, has announced that it has sold nearly $35 million worth of digital art in 2023, making it one of the most exciting years for the emerging art form.

What is digital art and why is it so popular?

Digital art is a broad term that encompasses any artistic creation that is made or displayed using digital technology, such as computers, smartphones, tablets, or blockchain. Some of the most popular forms of digital art include:

• Generative art: Art that is created by an algorithm or a set of rules, often involving randomness, complexity, or interactivity. Examples of generative art include Art Blocks, a platform that allows anyone to mint and collect unique pieces of code-generated art on the Ethereum blockchain.
• Crypto art: Art that is tokenized and verified using blockchain technology, such as non-fungible tokens (NFTs), which are unique and indivisible digital assets that represent ownership and provenance of a piece of art. Examples of crypto art include Beeple’s Everydays, a collection of 5,000 digital images that sold for $69 million at Christie’s in March 2023, making it the third most expensive work by a living artist ever sold at auction.
• Metaverse art: Art that is created or displayed in virtual worlds or online platforms, such as [Decentraland], a blockchain-based metaverse where users can create, explore, and trade digital assets. Examples of metaverse art include [The Sandbox], a gaming platform that allows users to create and monetize their own voxel-based games and experiences.

Digital art has become increasingly popular in recent years, especially among younger and more tech-savvy collectors, who appreciate its innovation, accessibility, and diversity. Digital art also offers new possibilities for artists to express themselves, experiment with different mediums, and reach a global audience.

How did Sotheby’s embrace digital art in 2023?

Sotheby’s, which was founded in 1744 and has a long history of selling fine art and antiques, has been quick to adapt to the changing landscape of the art market and embrace digital art as a new and exciting category. In 2023, Sotheby’s held several landmark sales and exhibitions of digital art, including:

• Natively Digital: A Curated NFT Sale: In June 2023, Sotheby’s held its first curated sale of NFTs, featuring works by 27 artists from different backgrounds, genres, and styles, such as [Pak], [XCOPY], and [Mad Dog Jones]. The sale attracted over 3,000 bidders and achieved a total of $17.1 million, setting new records for several artists and platforms.
• The Fungible Collection by Pak: In April 2023, Sotheby’s collaborated with Pak, one of the most mysterious and influential digital artists, to launch [The Fungible Collection], a series of NFTs that explored the concept of value and fungibility. The collection consisted of two types of NFTs: Cubes, which were sold in fixed quantities and prices, and Open Editions, which were sold in unlimited quantities and variable prices. The collection generated over $16.8 million in sales and attracted over 23,000 buyers.
• The 3AC Collection: In December 2023, Sotheby’s presented [The 3AC Collection], a selection of 31 NFTs from the private collection of Three Arrows Capital, a leading cryptocurrency investment firm. The collection showcased some of the most iconic and rare works of generative art on the blockchain, such as [Fidenza] by Tyler Hobbs, [Ringers] by Dmitri Cherniak, and [Squiggles] by Snowfro. The collection sold for over $1 million, with Fidenza #313 fetching $650,000, the highest price for a single NFT in the sale.

What are the future prospects for digital art and Sotheby’s?

Sotheby’s has demonstrated its commitment and leadership in the digital art space, and plans to continue to explore and expand its offerings in the future. According to Michael Bouhanna, Sotheby’s Head of Digital Art and NFTs, “2023 has been one of the most exciting years for digital art at Sotheby’s, and we are thrilled to have been at the forefront of this rapidly evolving and growing market. We look forward to bringing more innovative and diverse digital art to our global audience in 2024 and beyond.”

Digital art, meanwhile, is expected to grow further and reach new heights, as more artists, collectors, and platforms join the movement and create new forms of expression, value, and community. Digital art is not only a reflection of the current zeitgeist, but also a catalyst for the future of art and culture.