Manga/Novel about an injured blacksmith playing a Virtual Reality MMORPG

This might be Jared Mandani's True Smithing

Angus Bjornson only ever wanted to do one thing: to continue crafting exquisite weapons and pieces of armor for his loyal customers. Unfortunately, after one accident too many that leaves the old blacksmith completely disabled, it would seem he has no other choice but to hang up his hammer.

However, that would be underestimating the stubbornness of the self-made man. Fearing he’s not going to stop until he ends up dead in his forge, Angus’ children offer him a virtual rig that connects to Imperium Games’ many universes.

After choosing a fantasy-based world called Alterwelt, Angus—now known as Hephaestus—quickly learns that he can make use of his lifetime of experience by disabling the Auto function and playing on Manual. His skills allow him to create unique items that beat everything sold on the market. But Hephaestus has a long way to go before he can afford his own in-game forge. Moreover, he only ever learned to work with steel while here he has access to metals as strange and exotic as azuraneum, veridium, orichalcum…

Still, that might be the least of his problems. After he’s made a few sales and starts to get some recognition, Hephaestus realizes that there’s a reason the market is oversaturated with crappy items. As it turns out, a greedy guild enforces a monopoly on the crafting and they’re ready to do anything to keep anyone—lest of all a lone blacksmith—from digging into their profits…

Found with a search for litrpg blacksmith