The Digital Transformation Of The Visual Arts Market: The Digital Economic Impact Of Nfts And Online Galleries

Abstract

Since 2020, driven by the rise of non fungible tokens (NFTs) and the proliferation of online galleries, the Chinese visual arts market has undergone a profound digital transformation. This article explores the economic impact of these developments on Chinese artists, collectors, digital platforms, and the overall art economy. Using data from NFT trading platforms, market reports, and industry research, this study analyzed trends in market size, stakeholder interests, and regulatory response. This study found that NFTs have brought new sources of income for artists (through direct sales and resale royalties) and attracted a wider, technically savvy group of collectors, while online galleries and virtual auctions have expanded market access and enhanced market resilience during the COVID-19 pandemic. However, China's unique regulatory environment, including restrictions on cryptocurrencies and self regulatory bans on NFT secondary trading, has suppressed excessive speculation, resulting in a slower but more stable growth trajectory for its NFT market. The empirical results of this study indicate that although the Chinese NFT market will only account for about 6.5% of the global NFT transaction volume in 2023, it is expected to expand rapidly under sustained digital integration. This study discusses the impact of this digital transformation, including changes in value distribution, regulatory and copyright challenges, as well as China's potential to shape the future of the global digital art economy.