The popularity of 'arena of valor fanfic' is mainly due to the large fan base of the game. Fans love to read stories that expand on the game's universe.
There is a fanfic named 'Arena of Valor: The Team's Struggle'. It tells about a group of players facing various challenges in the game, from difficult opponents to internal team conflicts. They have to work together to overcome these and rise in the rankings. It's really engaging as it shows the real - life aspects that can happen in a gaming team within the context of Arena of Valor.
I'm pretty sure Valor isn't based on a true story. Usually, if it were, there would be clear indications or it would be widely publicized as such. But in this case, it appears to be purely fictional.
Act of Valor takes inspiration from true events and incorporates elements of real-life military operations. However, some artistic liberties may have been taken for cinematic purposes.