Same issue.
Also, to your question, no. Your sprites don't appear animated here either.
A mod in another topic said “No idea” in response to a question about it a couple hours ago :/
I have a partial solution:
Store your animated GIFs in a public GitHub repository and link the raw content URL in the HTML/Markdown with an <img> tag (HTML) or a ![]() (Markdown).
Here’s an example:

This works for GIFs in project page and devlog bodies, but it doesn’t work for banners or background images, since those have to be uploaded via the theme editor, and thus they rely on Itch.io to be animated and rendered correctly.
For now, I'm just starting to update all my banner images to have a better first frame so that the store pages are more presentable. It's more work than it sounds.
Also doing some external hosting of inline images, so at least I can get some of my animations to play until this issue is resolved- Definitely not ideal, though.
Cover images and banners are two different things- The cover image is the nearly-square image which is the "face" of your project when it's viewed as a store listing, while the banner image is the image shown at the top of your project page.
Cover images seem to work normally and when you hover the mouse over them they animate. Banners do not currently animate under any circumstances. Screenshots do not currently animate unless you click on them. Hope it can be fixed soon...
I did some screenshot testing and reported the results in the other gif thread:
Basically, the itch servers are delivering single-frame versions of animated gif screenshots, which is why they don't animate. As noted in the post, the animated version of my screenshot image is still on the itch servers and animates on the page correctly with a simple url change via dev tools (not a permanent fix). This indicates the issue is not related to gif file encoding before upload.
Hi! It’s been about a month since this issue began (if I’m not mistaken), and for those of us who provide animation products, it’s becoming a significant challenge. I really don’t want to sound insistent, but I was wondering if there’s any official update on the situation. I’d really appreciate it if someone could point me toward any ray of light here.
Thanks for your time and for all the work you’re doing to get this resolved.