The site was performing very poor under traffic spikes even at 3 visits a sec. So over the weekend sat down to performance tune starting with w3 total cache.
And added layers of caching + CDN to achieve this result. Please give your feedback.
Result: http://imgur.com/a/wPzCs
The setup used is: CloudFlare - Varnish - Nginx - W3 total cache with APC and Memcached on a 2GB SSD server