The new TextInputLayout widget, introduced a few days ago during Google I/O 2015, will give your application a true material design look and feel. The usual hint of an EditText will become a floating label when users start typing, making sure that they never lose context of the information they are entering.
Source files for the Tuts+ tutorial: Creating a Login Screen Using TextInputLayout
A demo of the animation can be found on YouTube.
Read this tutorial on Tuts+