The Hidden Economy of IPv4 Addresses: Market Trends and Investment Insights for 2025

The Digital Real Estate You Never Knew Existed

When I first learned that companies were buying and selling IP addresses like real estate, I couldn't believe it. But here we are in 2025, and IPv4 addresses have become one of the internet's most valuable commodities. If you're wondering why your company's IT budget suddenly includes "IP address acquisition costs," you're not alone.

The IPv4 address market has quietly grown into a multi-billion dollar economy. With only 4.3 billion possible IPv4 addresses and every smartphone, laptop, server, and IoT device needing one, we've created a fascinating supply and demand story that most people never hear about.

Why IPv4 Addresses Became Digital Gold

Let me share something that surprised me: in 2015, you could buy an IPv4 address for about $6. Today? That same address trades for $35-60. I've watched this market evolve from a niche concern to a boardroom discussion topic.

The scarcity is real. The Internet Assigned Numbers Authority (IANA) exhausted its pool of available IPv4 addresses back in 2011. Regional Internet Registries followed suit:

• APNIC (Asia-Pacific): Exhausted April 2011
• RIPE NCC (Europe): Exhausted September 2012
• LACNIC (Latin America): Exhausted June 2014
• ARIN (North America): Exhausted September 2015
• AFRINIC (Africa): Still has limited availability, expected exhaustion by 2026

What does this mean for businesses? If you need IPv4 addresses today, you're shopping in the secondary market, and prices reflect true scarcity.

The IPv4 Transfer Market: How It Actually Works

I've helped several companies navigate IPv4 acquisitions, and the process isn't as complicated as you might think. Here's how the market operates:

Transfer Types

1. Permanent Transfers Organizations with surplus addresses sell them outright. Microsoft's famous $7.5 million sale of 666,624 addresses to Amazon in 2017 opened many eyes to this market's potential.

2. Leasing Arrangements Can't afford to buy? Many companies lease IPv4 blocks. Monthly rates typically range from $0.25 to $0.50 per address, depending on block size and lease duration.

3. Specified Transfers These occur between organizations with existing relationships, often during mergers or acquisitions.

Market Pricing Dynamics

Current market prices (Q3 2025) show interesting patterns:

• /24 blocks (256 addresses): $45-60 per IP
• /20 blocks (4,096 addresses): $40-50 per IP
• /16 blocks (65,536 addresses): $35-45 per IP

Larger blocks command lower per-address prices but require substantial capital. I've seen startups struggle with this – they need addresses but can't afford large blocks, forcing them into higher per-unit costs.

Investment Opportunities and Risks

The Bull Case for IPv4 Investing

Several factors make IPv4 addresses attractive as alternative investments:

Growing Demand: Despite IPv6's existence, IPv4 demand continues growing. Cloud providers, VPN services, and mobile carriers constantly need more addresses.

Limited Supply: Unlike traditional commodities, we can't "mine" more IPv4 addresses. The supply is absolutely fixed.

Recurring Revenue: Leasing provides steady income streams. Some investment firms report 8-12% annual returns from IPv4 leasing portfolios.

Inflation Hedge: IPv4 prices have consistently outpaced inflation over the past decade.

The Risks You Need to Consider

But let me be honest about the challenges:

IPv6 Adoption: Eventually, widespread IPv6 adoption could crater IPv4 values. Though we've been saying "eventually" for 20 years now.

Regulatory Changes: Governments could intervene in the market, especially as addresses become critical infrastructure.

Technical Complexity: Managing IP addresses requires expertise. You can't just buy them and forget about them.

Market Illiquidity: Finding buyers for large blocks can take months.

Regional Market Differences

The IPv4 market isn't uniform globally. I've noticed distinct regional patterns:

Asia-Pacific

Highest demand and prices. Chinese companies particularly aggressive in acquisitions, often paying premiums for clean blocks.

North America

Mature market with established brokers and transparent pricing. ARIN's transfer policies are well-defined.

Europe

RIPE region sees steady trading. Strong emphasis on documentation and compliance.

Emerging Markets

Africa and parts of Latin America still have growth potential but limited purchasing power affects prices.

The IPv6 Question: Will It Kill the IPv4 Market?

Everyone asks me this: "Won't IPv6 make IPv4 worthless?"

Here's my take: IPv6 adoption is happening, but slower than anyone predicted. In 2025, global IPv6 adoption sits around 45%. At current growth rates, we won't see 90% adoption until 2035 or later.

More importantly, IPv4 and IPv6 will coexist for decades. Legacy systems, embedded devices, and the sheer cost of transition ensure IPv4's relevance. I compare it to how we still use telephone numbers despite having email – old technologies persist when they work.

Practical Strategies for Organizations

For Businesses Needing Addresses

1. Audit Your Current Usage You might have unused addresses worth thousands. I helped one company discover a forgotten /16 block worth $2.5 million.

2. Consider Leasing First Test your actual needs before committing capital to purchases.

3. Work with Reputable Brokers The market has legitimate brokers who handle compliance and ensure clean transfers.

4. Plan Your IPv6 Transition Use IPv4 scarcity as catalyst for IPv6 planning. Dual-stack approaches work well.

For Potential Investors

1. Start Small Begin with a /24 block to understand the market dynamics.

2. Focus on Clean Blocks Addresses with good reputation scores command premiums. Avoid blocks with spam or abuse history.

3. Understand the Technical Side You'll need to manage reverse DNS, WHOIS records, and routing announcements.

4. Consider IPv4 Funds Several investment funds now specialize in IPv4 assets, offering exposure without technical overhead.

Market Predictions for 2025-2030

Based on current trends, here's what I expect:

Short Term (2025-2026)

• Prices stabilize around $50-55 per address
• Increased leasing activity as purchase prices plateau
• More creative financing options emerge

Medium Term (2027-2028)

• First major corporate IPv6-only deployments
• IPv4 prices potentially peak around $65-70
• Consolidation among IPv4 brokers and holders

Long Term (2029-2030)

• Gradual price decline as IPv6 reaches 70% adoption
• Shift from ownership to service-based models
• Possible regulatory intervention in major markets

The Human Side of IP Address Economics

What fascinates me most is how this technical resource became a financial asset. I've met retired network administrators sitting on addresses worth millions, startups unable to grow because they can't afford IPs, and investors who've never configured a router making fortunes in this market.

This isn't just about technology or money – it's about the internet's growing pains and how markets emerge from scarcity. Every IP address represents potential: another server, another service, another connection to the global network.

Taking Action: Your Next Steps

Whether you're a business owner, IT professional, or investor, the IPv4 economy affects you:

1. Audit your resources: Check what IPv4 addresses your organization controls
2. Understand your needs: Calculate your actual IPv4 requirements versus nice-to-haves
3. Explore the market: Research current prices and trends in your region
4. Plan strategically: Balance IPv4 investments with IPv6 migration planning
5. Stay informed: This market changes rapidly; what's true today might not be tomorrow

Conclusion: The Unexpected Asset Class

The IPv4 address economy represents something unique in technology history: a fundamental internet resource that became a tradeable commodity. While IPv6 will eventually dominate, the transition timeline keeps extending, maintaining IPv4's value proposition.

For businesses, IPv4 scarcity is a challenge requiring strategic planning. For investors, it's an opportunity with characteristics unlike traditional assets. And for all of us who depend on the internet, it's a reminder that even digital resources have limits.

The next time you check your IP address, remember: you're looking at a piece of digital real estate that someone, somewhere, is willing to pay good money for. In the strange economy of the internet, even addresses have addresses – and they're worth more than you might think.

Want to learn more about IP addresses and networking? Check your current IP address and explore its details using our free IP lookup tool at ip.network.