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After a strong 2020, the cryptocurrency market has started witnessing volatility in 2021 but the new year seems to have put the wind into the sails of at least one virtual currency.

Data from Coinmarketcap shows the price of Stellar (XLM) surged over 120 percent in the 12 days of 2021 to become the ninth-largest cryptocurrency by market capitalization.

On January 13, 3:45 pm, the token was trading at $0.29, up 123.07 percent, or $0.16, compared to the 2020 close of $0.13. Over one year, XLM is up 800 percent, with its latest spurt being accompanied by a rise in volumes -- dubbed by analysts as a good sign.

The immediate outlook for Stellar looks bullish, analysts said.

The price is above 50-day and 25-day exponential moving averages. Therefore, in my view, XLM will continue bouncing back as traders eye the all-time high of $0.40, Crispus Nyaga told InvestingCube. The cryptocurrency will have to fall drop below yesterdays low of $0.2123 to invalidate this trend, he added.

Analysts say this rally is driven by Ripple (XRPs) legal woes, such as its battle with the US Securities and Exchange Commission. (On December 22, SEC filed a lawsuit against Ripple Labs, XRPs largest stakeholder, for raising $1.3 billion over seven years by selling XRP to retail investors.)

Besides, XLM is also helped by Stellars announcement of its collaboration with Ukraine. The company is helping the Ukraine government in establishing a central bank digital currency (CBDC).

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This cryptocurrency has more than doubled in 2021: Know all about it - CNBCTV18