lol...
ok, whats wrong with this icon? yep, the quality.
you really did not put much effort into it. i mean it misses a whole lot of things starting with the object itself and continuing on to the background, which is nothing more than a few randomly placed white stripes... (i can see where your brush went...)
so honestly. first, you should work on the object. try to make it less flat and look at the actual shape of a dagger, usually they do not consist of paper. then, add some outlines and a lot of shading, also work on your filling technique which is at the moment pretty messy.
after that you should go on with the blood. its form is already ok but it is not really liquid-looking, maybe add some highlights, imagine how a rain drop is effected by light...
last but not least you should change the background. removing it should be enough at first and when you came up with a better matching one with higher quality you should update the icon.
i hope i helped you a bit to direct your fantasy on the right path...
~pala
ps: don't let me see something like this again...