Inflations Impact on IPv4 Prices – September 2022

We are finally seeing some good news on the IPv4 demand front.

As of September 2022, we have 2 months in a row of positive IPv4 demand trends that parallel previous years, prior to the IPv4 crash in May of 2021.  We aren’t out of the woods just yet, however, the indicators could be great for the remainder of the year.

September transfer requests are up to 154, which is up +14% over this year’s average of 135 transfer requests.  More importantly, this falls in line with the average of 160 transfer requests from previous years when we had experienced a bullish IPv4 market.  What are the key indicators that can affect the rest of this year’s demand curve?

Interest Rates are up

As a result of rapid inflation, the United States federal interest rates are trending at a 10-year high of 5-6%.  This type of increase is notorious for causing the stock markets to spiral out of control into a bear market.  Most companies are hesitant to borrow money and consequently spend less.  While this was thought to be the case, the IPv4 market may have shorter rebound cycles.

While the same companies might spend less in certain business sectors, if your business is delivering internet services or hosting, IPv4 addresses are a critical revenue generating asset. Therefore, a business case is evident to continue buying IPv4 addresses, even at today’s higher rates.

 Also, with the recent IPv4 prices decreasing -15% from all-time highs of $53 – $58 per IP, Internet Service Providers, Hosting Companies, and Tier 1 carriers are likely finding this a good time to capture more IP addresses before the inevitable price increases in the coming years.  With IPv6 so far behind on a global adoption basis, everyone seems to universally understand that IPv4 addresses will continue to play a key role in global network development.

Much like dollar cost averaging back into the stock market at lower prices, this is a good time to take advantage of a seemingly bearish IPv4 market.