Online novels have developed numerous categories over the years, each with its unique background and development status. Here is an overview of the main categories of online novels and their formation and development status:

1. Fantasy

• Formation: The fantasy genre is one of the most difficult to define in online novels. It originated from Huang Yi's "Fantasy Series," initially referring to works that "integrate metaphysics, science, and literature."
• Development: With the development of online literature, the fantasy genre has continued to evolve, giving rise to many sub-genres such as Eastern Fantasy and Dynasty Conquest, and gradually becoming a mainstream genre in online novels.

2. Fantasy (Xuanhuan)

• Formation: The emergence of fantasy novels predates online literature, covering a broad range including Western magical novels and fantasy novels.
• Development: After the birth of online literature, the fantasy genre has taken on a new definition, mainly referring to novels with ancient Western colors and supernatural settings like magic.

3. Martial Arts

• Formation: The emergence of martial arts novels predates online literature, with the basic concept remaining largely unchanged.
• Development: Due to the changes in the internet era, martial arts novels have become less popular, even facing a crisis of survival.

4. Xianxia

• Formation: Xianxia novels are an upgraded version of martial arts novels, initially known as "cultivation" novels.
• Development: With the development of online literature, cultivation novels have evolved into Xianxia novels, which once enjoyed great popularity but later experienced a decline.

5. Urban

• Formation: Urban novels are defined by contemporary real society as the background prototype.
• Development: In terms of popularity and the number of works, the urban genre is on par with fantasy, especially with the rise of wireless reading markets, showing a potential to surpass fantasy.

6. Historical

• Formation: Historical novels are based on a particular period of ancient society.
• Development: Historical novels are relatively unique in online literature, with the combination of time-travel elements and history forming a new trend.

7. Military

• Formation: Military novels focus on military life or warfare.
• Development: Military genres demand high professional knowledge, resulting in fewer works and authors, and low popularity.

8. Game

• Formation: Also known as online game novels, this genre depicts the gaming experiences of players.
• Development: After the accumulation of a certain number of works, the game genre's market became saturated, but it remains a significant force in online literature.

9. Sports

• Formation: Sports novels are based on competitive sports events.
• Development: The sports genre is highly targeted, but it requires a high level of professional knowledge and imagination, resulting in fewer works.

10. Science Fiction

• Formation: Science fiction novels are based on new discoveries and achievements in science and technology for fantasy.
• Development: The concept of science fiction in online literature has changed, with a broad coverage and good integrability with other genres and elements.

11. Supernatural

• Formation: Supernatural novels focus on creating suspense and horror.
• Development: Supernatural genres have not performed well in the online literature market, but with the rise of mobile internet, they are showing an upward trend.

12. Fan Fiction

• Formation: Fan fiction is based on the characters and plots of existing works, evolving into new novels.
• Development: Fan fiction is suitable for beginners to start with but faces copyright issues and a narrow target audience.

These classifications and their development status reflect the diversity and richness of online literature, with each genre having its specific reader base and market positioning. As online literature continues to evolve, these genres are also constantly transforming and innovating.