Inflation’s Impact on IPv4 Prices – September 2022
We have two months in a row of positive IPv4 demand trends that parallel previous years, prior to the IPv4 crash in May of 2021
Jake Brander is an award-winning American entrepreneur, investor, and technology executive best known as the founder and president of Brander Group, a company focused on IT infrastructure, cloud services, telecommunications, and IPv4 address brokerage. He is also associated with IPv4 Connect, a marketplace for buying and selling IPv4 addresses.
Some of his accolades include:
Entrepreneur of the Year
Fortumes Most Innovative Companies
Financial Times Fastest Growing Companies
Inc 5000 Fastest Growing Companies
American Business Awards Telecom Company of the year
We have two months in a row of positive IPv4 demand trends that parallel previous years, prior to the IPv4 crash in May of 2021
So far, 2022 has shown a stable yet low level of IPv4 demand as compared to the previous three years. This is largely attributed to a massive increase in demand and the shortage of IPv4 inventory back in 2021, which in turn caused the prices to increase by 100% in just 1 year.
The IPv4 transfer market was born when ARIN, RIPE and APNIC created policy to allow IPv4 address to be transferred from one owner to another. According to the transfer logs from the three internet registries, there have been over 360 million IPv4 addresses transferred between private parties since 2016
The Rural Digital Opportunity Fund (RDOF) is a Federal Communications Commission (FCC) initiative designed to inject billions of taxpayer’s money into the construction and operation of rural broadband networks across America. RDOF is a key part of the FCC’s efforts to close the digital divide and ensure that all Americans have access to high-speed broadband. The intent of the program is to greatly improve the quality of life for communities in rural areas, while also creating a more connected nation as we move into the future. We will continue to provide updates on this significant initiative as more information becomes available.
As of June 2022, the IPv4 market seems to have created a new IPv4 demand baseline. With only 113 IPv4 transfer requests last month, we have a 3-month average of 111 transfer requests. While this is a steady stream of demand, the rest of the picture paints an interesting story for the end of the year.
The general consensus amongst many stock market analysts indicate that our economy might be headed into a recession. As seen in past instances, the IPv4 transfer market tends to follow the the global stock market. With the stock market continuing to decline, so do the number of IPv4 transfer requests, which is a strong indicator of the current global IPv4 demand.
April 2022 transfer requests decreased to only 108, demonstrating another massive decrease of -37% as compared to March. When looking at the average of 137 transfer requests in 2022, the decrease is still very significant at -21%. Interestingly enough, the April & Mays average transfer requests are still 140 per month, which does align with what we have found to be the “new IPv4 norm” over the last 11 months.
As of February 2022, the IPv4 transfer market continues to show a stabilized trend as it relates to demand for IP transfers over the past 9 months. The transfer requests increased from 132 in January to 137 in February, demonstrating an insignificant increase of +4%. While the trend seems to be very consistent, there is still a -30% decrease of IPv4 transfer requests since the IPv4 crash in May of 2021.
2022 begins with a market stabilization, albeit much lower than just 1 year ago. ARIN’s IPv4 transfer requests for the month of January was 132 (as demonstrated by the dark blue bar graph below), which is still down -30% since the IPv4 crash in May of 2021. More importantly, transfer requests are still down -20% compared to the average of the last 3 years. It looks like the IPv4 transfer market has established the “New IPv4 Norm” as it relates to the demand on a monthly basis. So what does that mean for prices moving forward?
What is IPv4 Geolocation?
IPv4 geolocation maps an IPv4 address to a specific geographic location based on the connected device. By geographically mapping the IP address, any user can determine the country, state, city, zip code, latitude/longitude, ISP, area code, and type of service it is being used for.
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