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Loopback isn't used for network transmission.
(2)
Loopback is a communication channel with only one endpoint. TCP/IP networks specify a
loopback that allows client software to communicate with server software on the same computer. users can specify an IP address, usually 127.0.0.1, which will point back to the computer's TCP/IP network configuration.
The purpose of the loopback range is testing of the TCP/IP protocol implementation on a host.
27.0.0.0 to 127.255.255.255. IP datagrams sent by a host to a 127.x.x.x loopback address are not passed down to the data link layer for transmission. Instead, they “loop back” to the source device at the IP level. In essence, this represents a “short-circuiting” of the normal protocol stack; data is sent by a device's layer three IP implementation and then immediately received by it.
The TCP/IP Guide - IP Reserved, Loopback and Private Addresses