Why Is Most BTCFi Still Based on Wrapped Bitcoin?

I’ve been thinking about how Bitcoin is entering DeFi, and something still feels a bit off. A lot of the current BTCFi ecosystem is built around wrapped BTC. Whether it’s wBTC or other versions, the model is usually the same: BTC is locked somewhere, and a representation of it moves around in DeFi.

It works for liquidity, but it also introduces extra trust layers. At that point, you’re not really using Bitcoin itself you’re using a claim on it. Lately though, there’s been more discussion around keeping BTC native while still making it useful in DeFi systems. The concept is interesting because it tries to avoid the typical trade-offs: No custodial wrapping, BTC remains secured by the Bitcoin network yet it can still participate in DeFi.

I believe If this approach works, Bitcoin could move from being mostly passive capital to something that actively secures other protocols without leaving its base layer. But I’m not sure how visible this shift actually is yet. Are people starting to notice the native BTCFi direction, or is the conversation still mostly focused on wrapped BTC? Curious what others here think. Is native BTC in DeFi still early experimentation, or are we already seeing the foundation of something big.