October 30, 2021

Price Hike Of IPv4 Addresses In 2021 – The Reasons

The COVID 19 pandemic and the global lockdowns have changed the internet space much in 2021. Non-used and obsolete IPv4 addresses have seen a comeback to the IPv4 market that is turning digital. The increase in demand for IPv4 addresses has reduced the availability of these addresses and pushed prices high. In this situation, the chances of fraudulent activity increase as businesses are anxiously looking to buy IPv4 addresses. Read along to understand the reason for the price hike of IPv4 addresses in 2021.

The IPv4 Scenario

In fact, all the internet registries have been active in the IPv4 market in 2020. ISPs, hosting service providers, telecom, and cable companies. All have been struggling to cope with the increasing demand for IPv4 address utilization. The increase in demand for IPv4 addresses has been generated by people who are forced to remain indoors. Moreover, the work from home approach has also increased the demand for IPv4 addresses. Businesses have understood that their workers can do their duties without a traditional office. This has also allowed businesses to reduce overhead charges.

The Reason For Price Hike Of IPv4 Addresses

To buy IPv4 addresses in 2021, you need to spend more than usual. The increase in demand for IPv4 addresses is pushing up the IPv4 prices. The significant reasons for the increase are:

Positive Vaccine News

The confidence of businesses increases as the availability of the COVID 19 vaccines increases. This encourages businesses to spend on IPv4 addresses as they expect business revenue to increase in the coming years.

Year-End Budgets

It is natural for the prices to increase in the fourth quarter. Businesses will wish to make use of their year-end budgets to ensure that they have almost the same budget in the coming year. As IPv4 address is an asset worth appreciation that can also offer revenue, many businesses are looking to buy these addresses. Which can eventually shoot up the prices.

Reduced Number Of IPv4 Addresses

The number of IPv4 addresses available for purchase has been almost the same. If the consumption rate is increasing at the same level, there can be very long queues to buy IPv4 addresses in the first quarter of 2022.

Increased Demand For IPv4 Addresses

As per the data from ARIN, there were 15% more requests than successful IPv4 trades in 2020. This indicates that the demand for IPv4 addresses is high and in additions to that, the availability of these addresses is limited. Moreover, this has resulted in an increase in IPv4 costs in 2021.

End Note

So, mentioned are the reasons for the increase in rates for IPv4 addresses. Does your business need one urgently? If so, its better to buy one at the earliest. The prices are expected to go higher. Moreover, IPv4 exhaustion is a truth too.

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