Ever since Arc System Works made a fantastic DBFZ fighting game, the community has been buzzing with ideas for other licensed fighting games. Bleach, Yu Yu Hakusho, Full Metal Alchemist, and many, many others!
One of the common suggestions was Avatar: The Last Airbender. The show is truly a perfect fit for the format. You have a large roster of characters that people love, you get cool elemental powers to play around with, and the whole concept of bending is built using real martial arts as a basis.
Finally, it an actual fighting game based on the Avatar is in development. In their roadmap report, Maximum Entertainment revealed that they have partnered with Paramount Consumer Products to make a competitive multiplayer fighting game based on A:TLA.
We don't have too many details yet, but it's known that they plan to release the game via Early Access in 2025.