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The 1986 version of the song is often credited as helping break hip hop music into mainstream pop music as it was the first hip hop song to hit the top 5 on the Billboard Hot 100, and the remake demonstrated how elements of hip hop music can be part of rockand pop songs, harking back to the DJing of Afrika Bambaataa, who would mix in tracks by the likes of the Beatles, the Rolling Stonesand Grand Funk Railroad among the more usual funk breaks. It also briefly samples the opening drum intro of the original in a middle section of the song. This version of "Walk This Way" charted higher on the Billboard Hot 100 than the original version, peaking at number 4. It was also one of the first big hip hop singles in the UK, reaching a peak of number 8 there.
The landmark collaboration catapulted Run–D.M.C. into mainstream stardom and would influence hip hop music for years to come. The song paved the way for other pop acts to introduce elements of hip hop into their music. It pioneered the trend of rhymed/sung collaborations that is so present on American Radio from the late 1990s and 2000s to the present. The collaboration also introduced a fusion of rock and hip hop, later known as rap rock, to a wide audience for the first time.
We can also attribute the door it opened for appropriation, and for Lil Wayne's rebirth album.

Did they elevate hip hop to a greater plateau and also destroy hip hop at the same time?

Run-DMC couldn't have been responsible for hip hop's current state.