If you use a separate texture for each of your sprites, Unity has to create and send a separate draw call to the GPU for each texture. As a result, performance can decrease.
To reduce the number of draw calls, create a sprite atlas. A sprite atlas combines multiple textures into a single texture. Unity only needs to create one draw call for all the sprites in a sprite atlas.
Note: If you use the Scriptable Render Pipeline Batcher, the number of draw calls might not decrease, but performance still improves a similar amount.
A sprite atlas texture in the Preview window. Seven crystals of different sizes are packed into one texture in different orientations.
To avoid Unity sending multiple sprite atlases in a draw call, the recommended best practice is to create separate sprite atlases for the following:
Each set of sprites you use at the same time, for example a different sprite atlas for each scene. This avoids Unity loading unused sprites into memory, or creating multiple combined textures for a large number of sprites.
Sprites that need different compression settings. For example, create a sprite atlas for highly detailed character sprites, and a separate sprite atlas for less-detailed environment sprites.