All Along the Watchtower is the example that jumps most quickly to mind, although by an odd perhaps (not) coincidence, a very old folk song Dylan revived for the Rock Era in 1961, called The House of the Rising Sun has subsequently been done better by everyone else; The Animals, Frijid Pink had the most commercial success with it. I think just about every folksinger in the 30's and 40's tried his/her hand at it, certainly everyone in Woody Guthrie's circle did before Dylan came along. My favorite rendition currently belongs to Leslie West. It is also the most recent major label version I'm aware of.
The Animals nailed it. Second for me is Leadbelly’s cover, but only his version with the kind of ragtimey walking rhythm.