What triggers a network is the number of instances, not the number of players
A well tuned Paper handles a good crowd long before a proxy makes sense. What pushes a project towards Velocity is how many Java processes run in parallel, not how full the server gets.
The maths flips once the instances stop being compatible: different versions, different mod loaders, different restart cycles. None of that fits in one server, and that is where the proxy pays for itself.
The reverse holds just as strongly: the proxy is one more service to watch and the point everybody passes through. If you run one server and just want one more world, a multiworld plugin is the better answer.