Why YSK: Transparent background images often don’t look very nice on Reddit, but they can be quite sleek over here. For some examples just look at the profile pictures of mod list for this community on the sidebar. They also work well for communities. Be careful to pick colors that aren’t too dark or too light, and which contrast well with your community’s banner.
Looks pretty crisp on dark mode at these dimensions. I wonder if it’s enough contrast at a much smaller size.