Lorenzo Valente: AI proxy traffic surges, encryption infrastructure will become the underlying settlement layer

ARK Invest research director Lorenzo Valente stated that Cloudflare's financial report shows that AI agent traffic increased by 1700% year-on-year, accounting for over 50% of total network traffic. Cloudflare processes approximately 500 million requests per second and may charge a micro payment fee of $0.001 for AI proxy requests in the future. If it reaches 10 million TPS, the basic transaction fee scale is about 315 billion US dollars per year, far exceeding Visa's processing capacity of about 20000 TPS. The encryption infrastructure is expected to become the foundation of the AI proxy economy.