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http://libpng.org/pub/png/pngapbr.html
(This is really a developer tool for testing web pages against the limited resolution of WebTV hardware [above], but it's also one of the few Windows browsers to have excellent PNG support--along with Mozilla / Firefox / Netscape 6.x and Opera 6.x, of course.)
https://www.htmlcenter.com/blog/cross-browser-semi-transparent-backgrounds/
By now, most people are probably aware of the fact that you can use 24-bit PNG images to create semi-transparent backgrounds in newer browsers. However, because a large percentage of Internet users have still not adopted Internet Explorer 7; which means that they’re still using IE6, which doesn’t support 24-bit PNG images, we have to find a way to mimic that behavior.
https://webmasters.stackexchange.com/questions/31159/is-it-safe-to-assume-99-9-of-browsers-in-use-now-can-display-png-files
According to W3Schools' Browser Stats, about 98.2% of browsers are IE 7+, FF, Chrome or Opera, which all support PNG format with transparency. So, not quite 99.9%, but pretty close. The stats say about 0.6% of uses have IE6, which suppports PNG without transparency (transparent PNGs in IE6 just have a solid white background).
https://stackoverflow.com/questions/9147883/only-png-supports-transparency-is-that-true
JPEG XR (not the same as JPEG 2000) also supports transparency. However it is not a useful format for the web as only Internet Explorer and Edge support it. WebP is another emerging image format with support for transparency. However, Safari and Internet Explorer lack support for it.
https://answers.yahoo.com/question/index?qid=20110228211016AAQ9RGN
Feb 27, 2011 · PNG pretty much obsoletes GIF in nearly all cases except for animation (although it still have a little bit of browser support problem, IE6 doesn't support PNG's alpha transparency although regular GIF-like transparency is no problem). PNG is lossless format which means color information is fully intact. GIF is nowadays only useful for animation.
https://en.wikipedia.org/wiki/Transparency_(graphic)
PNG and TIFF also allows partial transparency, which solves the edge limitation problem. However, support is even more patchy. Internet Explorer prior to version 7 does not support partial transparency in a PNG graphic. Very few applications correctly process TIFF files with alpha channels.
https://stackoverflow.com/questions/1344122/favicon-png-vs-favicon-ico-why-should-i-use-png-instead-of-ico
ICOs and PNGs both allow full alpha channel based transparency; ICO allows for backwards compatibility to older browsers (e.g. IE6) PNG probably has broader tooling support for transparency, but you can find tools to create alpha-channel ICOs as well, such as the Dynamic Drive tool and Photoshop plugin mentioned by @mercator.
https://en.wikipedia.org/wiki/APNG
Mozilla Firefox added support for APNG in version 3 trunk builds on March 23, 2007. However, because libpng is the PNG Group's reference implementation of the official specification, APNG support can never be supported in the main libpng distribution so long as it remains unratified by the Group.
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