IPv4 Markets |
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Outdated policies at Regional Internet Registries hinder the efficient transfer and leasing of IP addresses, driving up internet costs in emerging markets and limiting innovation. A faster, more inclusive governance model is urgently needed.
The Internet has evolved from a scarcity-driven system into one defined by abundance, reshaping infrastructure, governance, and economic models while challenging long-held assumptions about addressing, network roles, and the future of protocol design.
With IPv4 addresses fetching up to $30 apiece and IPv6 adoption lagging, companies may be sitting on hidden digital assets. A strategic audit could unlock unexpected revenue and enhance long-term infrastructure planning.
Diverging policies and fee structures among Regional Internet Registries are reshaping the global IPv4 market. RIPE has emerged as a liquidity hub, while others leak resources, risking long-term instability and financial fragility.
Through 2024, IPv4 leasing stayed steady at about $0.50 per IP per month, even as purchase prices diverged by block size. Large blocks (like /16) corrected notably while smaller blocks (/20 - /24) remained comparatively firm. That spread reflected shifting enterprise behavior (more surgical allocations, less speculative buying) and the resilience of subscription-like leasing in unstable conditions.
Between 2021 and 2023, the IPv4 market was a roller coaster ride - prices shot up in 2021, peaked in 2022, and plummeted in 2023. Those who expected a recovery in 2024 were sadly disappointed. Prices for IP addresses continued to decline, leveling out during the second half of the year. And yet, market activity remained remarkably unaffected - a sign, perhaps, that the market is settling into a new normal.
Cogent (CCOI) recently announced that it was offering secured notes for $206M. The unusual part is what it’s using as security: some of its IPv4 addresses and the leases on those IPv4 addresses... Cogent has been leasing out addresses for several years. All internet service providers (ISPs) give IP addresses to their users, but Cogent was among the first to lease those addresses independently of internet access.
In 2021, the story was price. In 2022, the story was price and large block supply. The story in 2023 is decline -- but with a notable caveat. Spurred by unprecedented unit pricing, the North American IPv4 market in 2022 experienced its second-best year in terms of overall traded volume, and in both 2022 and in 2023, large block market activity was as robust as ever, with sellers trading large blocks at over $50 per number.
The IPv4 market has created serious interest in the protocol far beyond the natural confines of networking professionals. These assets are worth a lot. Marketplaces, IPv4.Global's especially, have grown to be large centers of asset transfer by buyers and sellers of IPv4 addresses. IPv4.Global has helped transfer over $1 billion in IPv4 blocks.
An IPv4 address identifies your connection to the online world. IP addresses make it possible to host websites, manage secure communication, and engage in countless other essential, internet-related activities. Typically, when migrating to a new cloud provider, a business has only one path: lease the provider's IP addresses. But what if a business already has a block of IP addresses?