Yes. Animated favicons are on the rise. From Niall Kennedy to the latest Wikio, many use animated gifs as favicons instead of treditional .ico bitmaps. Since IE will never display favicons (even .ico files) anymore, why dont we exploit the new Firefox support for animated gifs as favicons?

<link rel="shortcut icon" href="/favicon.ico" type="image/x-icon" />
<link rel="icon" href="/animated_favicon.gif" type="image/x-icon" />


In FF, this gives more attention to the particular site tab, addressbar and in bookmarks. Suddenly you are more visible to the world

Update: Use FavIcon Generator from HTML-KIt to generate favicons from your own images. Yes. even scrolling text icons
There is a nice video tutorialon how to create your favicons and then upload to blogger