when should we aggressively cache api responses

ive been thinking a lot about caching lately, especially for api responses. we all know caching is great for performance, but how do we decide when to really go all-in on caching specific endpoints? is it purely based on read-heavy traffic, or are there other factors like data volatility or business criticality that should play a role? im curious to hear everyones approach to identifying candidates for aggressive caching strategies