such a good design and animation but i would say too that not using transparency would be for the best, you can achive the effect you desire in a more made by hand aproach, maybe it would even look better who knows right? and don't forget that you can re use colors as much as you want

No problem! Figured I'd mention it, layering/automated/etc effects like a fade out like this are typically not done by hand thus not allowed in the gallery. For uploads made for here, I would just try a dithering fade out or something like that 

Thank you! 
Yeah that's just a "death" fade-out effect I tend to use on sprites and games, everything else comes from the palette. Thanks for the advice!

Great work! Animation is fun and cute!