Let’s keep the good times rolling.  The trend for IPv4 demand, according to ARINs data, is on the rise once again.  As predicted, this seems to be the changing of the tides.  So, what does this mean for any organization that relies on IPv4 as a source of their revenue?  Let’s evaluate at the data and determine where supply and prices may be headed this year.

As opposed to the two previous years, Brander Group started out with far less mid-market (/22s – /19s) inventory.  In fact, we hit a record high of 83 x IP transfers in March 2024 followed by another strong month in April with 64 x IP transfers.  This seems to be in line with the consistent demand that has been established in the numbers all year.

April IPv4 transfer requests were 163, which is +7% higher than this year’s average of 150 requests per month. Better off, April is a +13% increase over the 141 averages in 2023 and a +18% increase over the 134 averages in 2022.  These double-digit increases in demand are certainly precursors to a healthy IPv4 industry.

In addition to the stable demand in the IPv4 purchase market, there are outside factors that demonstrate more strength in the longevity in the long term value of IPv4 addresses. As of April 25th, 2024, Cogent announced they are offering $206 million in securitized notes backed by their IPv4 address inventory.  Over the past 6 years, Cogent has made a valiant effort to lease their IP addresses to a large number of clients globally.  Their success in penetrating the market and proving long term sustainable leasing, has further validated the value of IPv4 addresses among industry leading investment funds including Goldman Sachs and Barclays.

With the $42 Billion BEAD funding release dates around the corner, there seems to be many indicators of another bull market in the IPv4 sector.  The question at this point is not if, but when prices will begin to increase again.

IPv4 Valuable Asset Class May 2024

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