This. Was. Interesting. I've never animated text in After Effects! And to be honest I was so confused at first that I was trying to do transitions manually by key framing every rotation, position, scale etcetera. And then I opened the whole universe of text transitions in the panel on the right which already had this default key frames in them. So I started from scratch in the middle, but it looked so much better!
When I started combining pngs together to see how it looks with potential transitions, I risked it all and added some colors in the 2d version. I chose a handwritten orange font for Donkey and Serif green font for Shrek. I also found the original font used in the Shrek poster and movie title, but unfortunately, it didn't quite fit, so I had to let it go. Ahmed also suggested to use a more curvilinear font for Shrek and get rid of background color change cuz there were already a lot of transitions. So in my final version I applied all the comments and even like the result. I wanted to look like Donkey and Shrek continuously resisting each other with Shrek getting angrier with time. Hopefully, I was able to demonstrate it. Also while I was going through the effects, I changed the transition to different ones because in my head there were few things I could do with text while the effects panel offered much more. So, I decided to go with the flow and in the final video for this week half of the transitions are different from the ones used in the drafts before.
Final version for week 2
First b&w draft with combined pngs
Second draft of combined pngs with colors and fonts