Silicon Valley Bank Collapse Impact on IPv4 – March 2023

The March 10th collapse of Silicon Valley Bank was the second-largest bank failure in U.S. History since the financial crisis of 2008. Many well-known tech companies held hundreds of millions and upwards of billions of dollars in an institution that was ultimately unable to release funds, causing massive setbacks in normal budgets and spending plans.

The bank’s failure might cause a ripple effect of smaller and regional banks failing in the short and/or long term. Combined with the effects of the ongoing war between Russia / Ukraine and increasing inflation, we might see the U.S. and global economies continue to fall deeper into a recession for the next 12 months. The question is, how will this affect the U.S. economy and the IPv4 address market?

February IPv4 transfer trends are following the normal roller coaster and once again took a dive. With only 118 transfer requests, there was a decrease of -20% as compared to the 148 transfer requests in January. Compared to the average of 134 transfer requests from 2022, we are down -11%. Then compared to the average of 163 transfer requests from the previous 3 years, we are down -27%.

It appears that from a market sentiment standpoint, companies are still being negatively affected by the economic conditions, which is causing IPv4 demand to decrease. In addition, we are also dealing with an influx of IPv4 supply from organizations that need cash influx, which is causing IPv4 pricing resistance.

If you take the normal rate of price increases for IPv4 addresses over a 5-year period, 25% seems to be the normal average. Based on where prices were at $25 per IP at the beginning of 2021, the IPv4 market prices normalized and are at par with a 25% year-over-year increase leading into 2023.

Based on the market conditions, this might be the best time to buy IPv4 addresses for future network expansions and take advantage of the -15% to -20% discounts from all-time highs. Because as we all know, IPv4 is still a rare commodity that is no longer produced and will continue to play a key role in global network development for the next 5-10 years.

We still have /24’s up to /18’s available in RIPE, ARIN and APNIC at 15% below market value. For pricing options, please email info@brandergroup.net or contact us