WOO PIXELATION IS UP AGAIN
Before moving on to the walking animation, if you ask me, the sprite itself should be a higher priority. I think it's clear it's a result of boredom. Think about it. What is it? Some kind of cute zombie ragdoll with a mutant arm? Aside from the patch on its right eye, there's basically nothing else to suggest this. (And I don't think the bandage on its head is needed. Not only is is it distracting, a stitch would serve better for that purpose.)
When paired with the other sprites, their subject matter seems both pretty random and generic; colorful, bouncing blobs of slime and some cute screws with faces. Not sure how many times I've seen the "slime" enemy, but it's probably been a lot of times since I can trace my early sightings back to MapleStory.
It doesn't fit in with the other tiles very well. It uses more black outlines than the grass/rock tiles, and it's completely in gray-scale, which contrasts with the saturation of the rest of the sprites.
It lacks some character, and it lacks balance as well. (Both are made more obvious in the walk cycle.) The legs might be too far back, and the normal arm as well. The mutated arm seems unnaturally weightless--you could remove it from the sprite and you wouldn't notice. Swinging it back and forth or even dragging it seems more reasonable, if you can pull it off. (Thinking of it, the head seems similar. Maybe you could time its bobbing differently, relative to the body?)
Quick redo:

Added some more color, more value to the shading, more stitches. Tried to add some variety to its stance to add to its character, but its left arm looks a bit out of place.
(Also,
this tutorial by Ptoing (walk cycles) should be of some help.)
@RedKnight91: Yeah, almost forgot to mention! 9 was definitely one of my inspirations. The designs (and perhaps the premise behind them) are actually a bit similar to the subject of CMC's sprite--but not so large-headed--so he could use that for reference and improvement in design.