What do you reckon is the reason for the increase in gay kids in the west after the decriminalization of homosexuality in most western countries? Hint: it's the decriminalization and social acceptance allowing gay people to come out of the closet rather than having to pretend they're straight for fear of consequences.
The kids aren't being transed. I know there are several mostly British authors having extremely loud voices spreading FUD about "rapid onset gender dysphoria" but that's not even a thing. It's based on a paper that used answers from parents about trans kids. Follow-up research has demonstrated that to the kids it was anything but rapid. You might as well invent a phenomenon of "rapid onset body size" to explain why grandparents will insist "how can you already be so big, it feels like you were a tiny baby only such a short while ago".
You're overthinking this, but to ease your mind: people aren't undergoing HRT and surgery because all the cool kids are doing it. They might experiment with neopronouns and gender identity labels for a bit but there's literally no demonstrable harm in that.
Also if you think identity politics is a new thing: US politicians literally put God on the dollar bills to appeal to Christian conservatives (prior to that the national motto was always "E pluribus unum", not "In God we trust"). We just don't tend to think of things as identity politics when we take the identity for granted.
EDIT: That you see more trans people is a good thing actually. Visibility is the result of social acceptance. And social acceptance is the biggest contributor to reducing suicidality and improving quality of life. Trans people haven't been killing themselves because they're trans, they've been killing themselves because everyone kept telling them they're not. You can't trans a kid any more than you can make them gay.