This method to create pixel art is inspired by the process used for Dead Cells and the art seen in 9 Years of Shadows.
This video has a great explanation on how to do it: https://www.youtube.com/watch?v=iNDRre6q98g&t=301s
But I find rendering in Unity pretty limmiting, so i prefered rendering in Blender. The Atlases were made with GlueIt. Also I used the default lit material of Unity, this can be replaced for a custom one so the subUV animation is also changed when the base animation does.
Material with normal map
Material without normal map