ZK proof demand from layer 2 networks has dropped sharply in 2026, with L2 fees now exceeding Ethereum's base-layer costs, according to Cysic. The company has pivoted its infrastructure focus toward AI inference in response to the collapse in rollup proving activity. Cysic co-founder Leo Fan outlined the strategic shift and detailed plans for real-time Ethereum proving with latency under 8 seconds, positioning the firm to capture value outside the saturated L2 proving market.