A system and a method to allocate data to a first cache increments a first counter if a reuse indicator for the data indicates that the data is likely to be reused and decremented the counter if the reuse indicator for the data indicates that the data is likely not to be reused. A second counter is incremented upon eviction of the data from the second cache, which is a higher level cache than the first cache. The data is allocated to the first cache if the value of the first counter is equal to or greater than the first predetermined threshold or the value of the second counter equals zero, and the data is bypassed from the first cache if the value of the first counter is less than the first predetermined threshold and the value of the second counter is not equal to zero.