If there is a sufficient time prior to expiry, as well as either pay renewal or drop it, there is a third option, to auction it at Sav. Some premium .xyz continue to sell at good prices even with renewal. Sedo are accepting auction submissions for some new gTLD extensions including .xyz, but not sure if you are allowed with premium renewals.
Re keep or not, I guess I would try to guesstimate the probability of selling and probable selling price. Here is a list of LLL sales in .xyz from NameBio.
https://namebio.com/?s==kTO1YjM2czM
For example, if you think your name might sell for $20,000, but has a chance of selling in any one year of 1 chance in 200, then multiplying those gives $100, so paying $1000 per year is not worth it. These are just example numbers of course, the real would depend on the name.
If you have not already done so, I would look up in OpenCorporates to see how many businesses have the short word as part of their name to give some idea of potential market, and as well as TLDs (from dotDB) look up also related longer words that include that name.
Right now many of the buyers paying $$$$+ for .xyz are web3 related. Is this word potentially a great web3 brand?
Anyway, my thoughts. Best wishes whatever you decide to do.
Bob
PS One of the brandable places, SH, take .xyz, and might be interesting to know how they would price the name. And if you list with them get added exposure due to their online ads. On other hand, need high price to make the holding risk worthwhile.
PPS If you do decide to renew it, make sure you shop around to get the best rate for the premium renewal. Some places charge more than others.