No business is "too saturated" to exist. You either have so few competitors that demand is more than supply or you have enough Competitors to provide enough supply for the demand.
Demand in an industry like this will always rise tho. New people will need proxies, more people enter the industry every year. And old competitors go bust all the time. So there's always space for a new guy. Give a better service than your competitors and their users will be yours.
Whether it will be worth it will depend on your minimum cost of operation and how mqny people you can reach out to without marketing being a huge expense.
Right now, the proxy industry is in the "supply > demand" stage. Users have options to choose. You need a strategy to capture a part of the market and do it at low enough operation cost for it to be worth it.
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