Coin WorldSunday, Jul 6, 2025 3:25 pm ET

2min read

Collectibles and NFT tokens represent a dynamic fusion of digital ownership, blockchain technology, and entertainment. These tokens are often associated with gaming, metaverse worlds, or creative assets, enabling users to buy, collect, trade, or battle digital items, each backed by on-chain records of rarity and provenance. While these tokens can be speculative, those with a market cap below $1 million can offer high upside potential, albeit with elevated risk and volatility.

StarHeroes (STAR) is an esports-style multiplayer space shooter on Arbitrum, developed by veterans from AAA studios and partly funded by Microsoft. Players engage in real-time battles using NFT-based spacecrafts, with STAR serving as the utility and governance token. The game has attracted significant attention, with over 400,000 pre-registered players and an upcoming Early Access public launch in Q2 2024. STAR tokens facilitate marketplace transactions and offer airdrop rewards, playing a crucial role in the game’s economy.

My DeFi Pet (DPET) combines DeFi and a virtual pet game across multiple blockchains, including BSC, OpBNB, and KardiaChain. Users can breed, evolve, battle, and stake NFT pets, with DPET driving the in-game economy, staking rewards, breeding mechanics, and governance decisions. The game also offers yield-farming opportunities in cooperation with other projects and plans to introduce battle and storage options.

SENATE (SENATE) is the governance token for an NFT-driven gaming ecosystem known as Sidus Heroes. It is used to vote on game upgrades, economic factors, and guild mechanics, tying community decisions to token ownership. As of the end of June, a significant portion of the total tokens have been burned, indicating a reduction in supply and potential increase in value.

DSLA Protocol is a decentralized SLA (Service Level Agreement) risk-management platform. Users stake DSLA tokens to support service providers, and if SLAs are not met, token holders receive compensation. The protocol is being upgraded to version 3.0, introducing advanced features such as ALI Agents, Hives, distributed GPU and Storage Clusters, tokenized AI Models and Datasets, and tokens with non-custodial embedded liquidity. These features highlight DSLA Protocol’s commitment to leveraging decentralized AI technology for enhanced risk management.

VIDT DAO (VIDT) is a decentralized governance token that powers data authentication on the blockchain, ensuring integrity in digital asset verification. The core of VIDT DAO’s offering is its $VIDT Utility Token, which facilitates the timestamping process. Each timestamp requires only 1 $VIDT, allowing all holders to seamlessly secure their digital documents. This mechanism positions VIDT DAO as a vital player in the blockchain space, with over 25 real-life integrators already utilizing its technology.

In summary, the top five collectibles and NFT tokens to watch below a $1 million market cap in July 2025 include StarHeroes (STAR), My DeFi Pet (DPET), SENATE (SENATE), DSLA Protocol (DSLA), and VIDT DAO (VIDT). These tokens represent a diverse range of applications within the blockchain and gaming ecosystems, each offering unique value propositions and potential for growth. However, investors should be aware of the elevated risk and volatility associated with these tokens.