Input fields design

[Grizzly127]

To me the gap between the fields look way too big. I know we need to have some space for the titles, but can the gap still be reduced?
For example at the Login field:

This gap would also be enough: 16px between the input fields should be enough to still place the heading there:

[HeyItsBATMAN]

What about growing and shrinking depending on if the label is inside of the input box or above the input box?

2026-07-09.19-10-28.mp4_web.mp4

[Grizzly127]

Me personally I don't like it moving so much then.