The IPv4 market is shifting rapidly. Here’s what you need to know:
- Prices are volatile: Larger IPv4 blocks (e.g., /16) dropped by 52% between 2024 and early 2025, while smaller blocks held more stable.
- Demand is changing: AI companies and smaller ISPs are driving demand for smaller IPv4 blocks, while hyperscalers are scaling back purchases.
- Regulations matter: Regional policies and costs vary widely, adding complexity to cross-border transactions.
- IPv6 adoption is slow: Despite growing adoption (44% by 2024), many businesses remain reliant on IPv4.
Key takeaway: The IPv4 market has transitioned from stability (2014–2021) to unpredictability (2024–2025). Businesses must adapt with a mix of purchasing, leasing, and strategic planning to navigate price swings, regulatory hurdles, and evolving demand. For a quick comparison of stable vs. volatile market conditions, see the table below.
Quick Comparison
| Factor | Stable Market (2014–2021) | Volatile Market (2024–2025) |
|---|---|---|
| Price Trends | Predictable, steady increases | Sharp fluctuations; block-size dependent |
| Operational Risks | Low; consistent availability | High; timing affects costs |
| Decision-Making | Long-term planning | Agile, quick adjustments |
| Financial Planning | Easier budgeting | Requires strong risk management |
| Regulatory Impact | Minimal disruption | Regional disparities amplified |
Next steps: Learn how to manage these risks and opportunities in the full article below.
Panel: Buying and Selling IPv4 Addresses
1. Stable Market Periods (2014-2021)
Between 2014 and 2021, the IPv4 market enjoyed a period of stability that became a reference point for organizations managing their networking resources. Prices for IPv4 addresses increased steadily and predictably, making it easier for businesses to plan budgets and forecast costs. The balance of supply and demand allowed companies to confidently schedule IPv4 acquisitions, while sellers maintained a healthy flow of addresses in the market. This consistency supported long-term planning for both buyers and sellers.
What Kept the Market Stable?
Several factors played a role in keeping volatility at bay during these years. One major contributor was the widespread adoption of Network Address Translation (NAT), which extended the lifespan of existing IPv4 addresses. By reducing the immediate demand for new address space, NAT helped stabilize the market.
Another factor was the slow transition to IPv6. For example, as of January 1, 2016, only about 10% of users accessed Google services via native IPv6 addresses. This sluggish adoption meant there was little urgency for organizations to move away from IPv4.
"The economic incentive to upgrade from IPv4 to IPv6 is just not there." – Marc Spindel, ARIN’s Cupboard Has Run Dry
Without clear financial benefits to justify the transition, businesses continued to rely on IPv4, further contributing to the market’s stability. However, while this reliance on IPv4 created a sense of predictability, it also masked potential challenges lurking ahead.
Low Operational Risks, but Growing Complacency
During this period, operational risks were minimal. A robust secondary market for IPv4 blocks ensured that organizations could acquire additional addresses when necessary. This reliability gave businesses a sense of security, but it also led to a certain degree of complacency. Many companies delayed their IPv6 migration plans, assuming IPv4 addresses would remain available and affordable indefinitely.
"Old networking technology takes a VERY long time to be phased out. It got installed because it was useful and doing something necessary. Once installed, people just tend to use it until it stops working and repairs become insanely expensive." – Tony Li, Internet Geek
This mindset explains why so many organizations continued to rely on IPv4 infrastructure during this stable period. While it worked well at the time, this reliance would later create significant challenges as market conditions shifted.
2. Volatile Market Periods (2024-2025)
The IPv4 market experienced a rollercoaster ride during 2024 and 2025, marked by significant price drops and unpredictable demand shifts. This period deviated from the steady growth of earlier years, as fluctuating prices and an increased supply forced businesses to rethink their IPv4 strategies. Here’s a closer look at how these changes unfolded.
Price Trends
The market saw a dramatic decline in prices for larger IPv4 blocks. For example, /16 blocks dropped from nearly $50 in mid-2024 to just over $24 by March 2025 – a staggering 52% decrease that left many businesses grappling with paper losses. Smaller blocks weren’t spared either, with prices tumbling by almost 40%, falling from $50 to $30. Interestingly, certain block sizes, such as /20–/21 and /22–/24, showed more resilience, generally trading within the $31–$34 range. By early 2025, average prices had leveled out in the low-to-mid $30s, though individual sales ranged anywhere from $28 to $48 per address.
"Even at $50 an IP, it was still worth it to purchase the IP addresses because it’s a streamlined process. You don’t have to buy new gear, there’s no learning curve, and there’s no backwards compatibility issues."
– Jake Brander, Brander Group
Amid the chaos, the leasing market provided a semblance of stability. Data from IPXO revealed that the average lease price across all Regional Internet Registries hovered around $0.50 per IP address in 2024.
What Drove the Volatility?
Several factors played a role in the market’s instability. Hyperscalers scaled back their IPv4 purchases, leading to a roughly 33% price drop for larger subnets (such as /18 to /16) in 2024. Meanwhile, smaller blocks gained traction among small to mid-sized ISPs, hosting providers, and proxy companies, particularly those involved in AI-related projects. The supply side also shifted: an influx of /16 blocks in early 2025 contributed to further price declines.
Adding to the complexity, market data pointed out an interesting trend: "The number of entrances into the market that want to sell IP addresses is decreasing at a faster rate than the demand for IPs is increasing". This imbalance created additional uncertainty for buyers and sellers alike.
Despite these challenges, IPv4 remained indispensable for most organizations. Even as global IPv6 adoption surpassed 44% by May 2024, the transition to IPv6 continued to lag, keeping businesses reliant on IPv4.
Operational Risks
The volatile market created a host of operational risks for businesses. Budgeting became a guessing game, as unexpected price drops led to significant paper losses. For instance, companies that had banked on annual returns of 20% instead faced returns closer to 12%.
The uncertainty was further reflected in IP transfer activity. While Brander Group facilitated 724 IPv4 transfers in 2024 – totaling over 3.4 million IP addresses and generating $154 million in revenue – this marked a 10% reduction in the number of IPs transferred compared to 2023. This environment made timing crucial: waiting too long risked further price drops, while buying immediately could mean overpaying if prices continued to fall.
Regulatory Pressures
Regulatory policies added another layer of complexity. Regional Internet Registries (RIRs) enforced varying rules, which influenced both supply and pricing. For instance, APNIC’s premium rates, peaking at $0.83 in May 2024, stood in stark contrast to AFRINIC’s more competitive $0.42 average. These disparities created artificial scarcity in regions like Asia-Pacific. Paulius Judickas, VP of Strategic Alliances at IPXO, noted:
"Over 95% of IP addresses in the IPXO Marketplace come from RIPE NCC and ARIN due to these registries’ more lenient sustainability policies that fully allow IP monetization".
Additionally, cross-border transfer regulations, economic sanctions, and privacy laws like GDPR introduced higher transaction costs and delays. These regulatory hurdles not only complicated short-term transactions but also made long-term planning more challenging. Looking ahead, further regulation of IP leasing is expected to play a significant role in shaping the IPv4 market.
The combination of price fluctuations, operational risks, and regulatory challenges highlights the intricate dynamics that continue to influence the IPv4 landscape. As businesses navigate these complexities, strategic planning and adaptability will be essential for staying ahead.
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Comparing Market Conditions: Benefits and Drawbacks
Looking at stable and volatile IPv4 markets reveals how each impacts IP strategies differently. Both conditions come with their own set of advantages and challenges, influencing how companies plan and manage their operations and finances. Understanding these differences is key to crafting a strategy that fits the market environment.
Stable Market Benefits and Challenges
During stable periods, IPv4 prices followed a predictable upward trend. For instance, between 2020 and 2021, prices increased by nearly 250%, offering a level of consistency that made budgeting easier.
The biggest perk of a stable market is reduced risk. Companies can plan and secure IPv4 resources without stressing over sudden price hikes or supply shortages. This predictability allows IT teams to focus on infrastructure development instead of worrying about market timing. However, the downside is that delaying purchases can be costly. As demand continues to outstrip supply, prices steadily climb, making procrastination an expensive mistake.
Volatile Market Dynamics
The period between 2024 and 2025 painted a very different picture. Larger IPv4 blocks saw a sharp price drop – from over $50 per address to about $30 by late 2024, a decrease of roughly 33%, largely due to reduced demand from hyperscalers .
Volatile markets offer opportunities for cost savings but require quick decision-making. For example, leasing became an appealing option during this time, with the average lease price across all Regional Internet Registries (RIRs) sitting at around $0.50 per IP address in 2024. However, this environment also brings higher financial risks. Companies holding IPv4 assets as investments faced significant paper losses, while buyers had to grapple with the uncertainty of when to buy for the best deal.
Regulatory Impact Across Market Conditions
Regulations also play a role in shaping market behavior. Stable markets benefit from consistent policies, which help ensure smooth transactions. In contrast, volatile markets often highlight regional regulatory differences. For instance, in 2024, APNIC’s lease rates peaked at $0.83 per IP address in May, while AFRINIC offered more competitive rates at about $0.42 throughout the year .
"Over 95% of IP addresses in the IPXO Marketplace come from RIPE NCC and ARIN due to these registries’ more lenient sustainability policies that fully allow IP monetization."
– Paulius Judickas, VP of Strategic Alliances at IPXO
These regulatory disparities can create artificial scarcity in some regions, especially for companies operating across multiple jurisdictions.
Strategic Considerations
Neither market condition is inherently better – it all depends on your strategy. Stable markets favor long-term planning and investments, while volatile markets reward flexibility. Often, companies find success with a hybrid approach, combining purchasing with leasing to balance risk and reward.
| Factor | Stable Market (2014–2021) | Volatile Market (2024–2025) |
|---|---|---|
| Price Trends | Predictable, steady increases | Sharp fluctuations; block-size dependent |
| Operational Risks | Low; consistent availability | High; timing affects costs |
| Decision-Making | Long-term, strategic planning | Agile, quick adjustments |
| Financial Planning | Easier budgeting | Requires strong risk management |
| Regulatory Impact | Minimal disruption | Regional disparities amplified |
Organizations like V4 Capital Partner have stepped in to help businesses navigate these complexities. By offering services in IPv4 brokerage, investment consulting, and leasing, they help companies maximize returns, no matter the market condition.
Adapting to these market shifts is crucial. A hybrid approach to IPv4 management has proven effective, as highlighted by Paulius Judickas of IPXO: "One would think that companies sitting on unused IP resources would either monetize or sell them, but that hasn’t been the case. In fact, there are still over 800 million unused IPs, mostly held by companies that obtained resources when IPv4 scarcity wasn’t an issue". This insight shows how market conditions not only influence pricing but also shape how resources are utilized across the IPv4 landscape.
Conclusion
The story of the IPv4 market’s shift from stability to unpredictability highlights three key risks that everyone involved needs to grasp: regulatory uncertainty, supply-demand imbalances, and the impact of technological developments. The steady growth observed between 2014 and 2021 contrasts sharply with the volatility seen in 2024–2025, showing how quickly market dynamics can change. These risks emphasize the importance of having strategies that can adapt to evolving conditions.
One of the biggest drivers of market instability has been supply constraints. As Jake Brander from Brander Group put it, "The number of entrances into the market that want to sell IP addresses is decreasing at a faster rate than the demand for IPs is increasing". This mismatch has turned IPv4 addresses into valuable financial assets rather than just technical resources.
Adding to the complexity, regional variations in regulatory policies create artificial scarcity, while differing compliance requirements make cross-border transactions and long-term planning more challenging. These issues became even more pronounced during periods of market volatility.
Technological changes, particularly around IPv6 adoption, add another layer of uncertainty. With global IPv6 uptake growing by about 3–4% annually, the slow transition has kept demand for IPv4 addresses alive. This leaves long-term investors questioning when IPv4 assets might finally lose their value.
A balanced approach, such as combining purchases with leasing, can help manage risk. For instance, the IPv4 leasing market in 2024 remained relatively stable, with an average rate of $0.50 per IP address across all Regional Internet Registries. This stability highlights the potential benefits of a diversified strategy.
Working with specialized consultancies, like V4 Capital Partner, can also be a game-changer. Their expertise in brokerage, investment consulting, and strategic asset management is especially valuable during volatile times when informed decisions and in-depth market knowledge are critical.
As Dainius Luksta from IPXO observed, "The growing imbalance between supply and demand has profoundly transformed IP addresses from oblivious technical resources into highly coveted financial commodities". Whether during stable or turbulent periods, success in the IPv4 market depends on staying proactive and flexible. Tailoring your strategy to meet these shifting risks is essential for navigating this ever-changing landscape.
FAQs
What are the key factors driving volatility in the IPv4 market?
The IPv4 market has been quite unpredictable lately, and several factors are fueling this instability. A big reason is the slow shift to IPv6. Even though IPv4 addresses are in short supply, the lag in adopting IPv6 keeps the demand for IPv4 addresses strong. On top of that, economic ups and downs, along with changes in regulations, are also affecting prices and the overall activity in the market.
Another important factor is the growing dependence on cloud services, which has pushed the demand for IPv4 addresses even higher. At the same time, the release of larger address blocks can shake up pricing trends. Together, this tight supply and soaring demand are making the market even more volatile.
How do regional regulations affect the IPv4 address market?
Regional rules significantly impact how IPv4 addresses are bought and sold. Each region is overseen by a Regional Internet Registry (RIR), which establishes its own set of policies for IPv4 address transfers. These policies can differ greatly – some regions demand detailed documentation, while others have more straightforward procedures.
When transactions cross borders, things can get tricky. Different compliance standards might lead to higher costs or delays in completing transfers. On top of that, local demand and regulatory conditions can affect both the price and availability of IPv4 addresses. For businesses, understanding these regional factors is key before diving into any transactions.
How can businesses effectively manage risks in the unpredictable IPv4 market?
To handle risks in the unpredictable IPv4 market, businesses can take a few practical steps. One option is to lease IPv4 addresses instead of buying them outright. Leasing often offers more stable pricing compared to the often-volatile purchase market, which can help businesses better manage their costs. For instance, leasing rates typically stay consistent even when the prices of large address blocks see sharp drops.
Another useful approach is to keep a close eye on market trends and pricing shifts. Being informed about changes in supply and market conditions allows businesses to make more informed decisions. Some companies also experiment with breaking down larger IPv4 address blocks into smaller ones to potentially fetch higher prices. However, this tactic comes with risks, as selling smaller blocks isn’t always guaranteed to be quick.
By blending these strategies, businesses can better navigate the challenges of the IPv4 market while minimizing potential risks.