How do I create these wave-like form in Adobe Illustrator/photoshop? I tried to use blended objects and applied the text on it, but it doesn't work.
Photoshop's Filters > Distort Displace makes something resembling. Here's a screenshot of raw text:
Add a layer, draw something with black, white and grayshades:
Blur the result if you want smooth bumps. If you want generally smooth bumps, but also a folding, leave or repaint a sharp edge. Here are only smooth bumps:
Save the file as PSD. The black-grey-white pattern must be the top layer. Increase the canvas size to keep all forthcoming in the image, say 10%
Goto Filters > Distort > Displace. Set the displacement length (=px) amplitudes (white=+100%, Black =-100%) and edge treatment options and select the just saved displacement map file:
Note that all shifts are made to the same direction which depends on the selected amplitudes.
If you want editable text, do not have raster image text, but use a text layer or many at the same time selected layers and convert them to Smart Object. When you apply Displace to it, Photoshop generates a smart filter. You can edit it's content like any smart objects without quality nor effect losses.
Not asked: The displacement effect didn't in this case affect at all the understandability of the text.
Not knowing the software you have available, I can tell you if I were doing this, if I were OK with a fast, but destructive workflow, I'd probably use the Liquify Persona tools in Affinity Photo.
Photoshop also has some decent Liquify tools which would enable the same level of control of warping and distortion.
Another approach in Photoshop would be to set up a white/black/grey map and load it into Photoshop as a displacement map - that could be a less destructive workflow. You select your type layer, go into Filters>Distort>Displace and this will tell you to either rasterise your type layer or make it a Smart Object (Smart Object better choice) and then ask you to point at a PSD for the displacement map.
I threw a super-quick diff clouds map that ended up looking like this:
Hope that helps.